Health Insurance: “After this decision, most insurance companies may increase the cost of insurance by 10-15%,” Rupinderjit Singh told CNBC-TV18.com.
Health Insurance: Insurance Regulatory and Development Authority of India (IRDAI) has recently taken a big decision and abolished the age restriction for health insurance policies. This means that age will no longer be a hindrance while purchasing a health insurance policy. However, while the move promises to increase access to health care coverage for individuals of all ages, it raises questions about the impact on premiums and waiting periods.
ACKO’s Retail Health Vice President Rupinderjit Singh told what impact this decision will have on elderly policyholders. However, this is not expected to have any impact on existing policyholders. But Rupinderjit said that this will provide more options to those customers who want to shift from the existing cover to a more comprehensive cover.
However, meanwhile, concerns arise regarding the waiting period, as IRDAI has ordered to fix the waiting period from the current four years to a maximum of three years. “After this decision, most insurance companies may increase the cost of insurance by 10-15%,” Rupinderjit Singh told CNBC-TV18.com. Choose Comprehensive Option Meanwhile, after the removal of age limit, Singh has advised senior citizens to evaluate carefully while purchasing the policy. He said customers should opt for comprehensive coverage with minimal or no waiting period, especially if they do not have any existing medical conditions. Meanwhile, for those who are already suffering from some health problems, Singh recommended them to compare the policies offered by different insurance companies keeping in mind the coverage and insurance cost. Anuj Parekh, Co-Founder and CEO, BharatSure, talked about the approach of insurance companies regarding the age bracket above 65 years. He believes that due to this step of the insurance regulator, insurance companies will have to face some challenges. “Pre-existing medical conditions in this age group will prompt insurance companies to carefully evaluate the profitability and sustainability of the policy,” Parekh said. Parekh said that for individuals, employer-offered health insurance can prove beneficial, where there are likely to be competitive premiums and more favorable policy conditions. Need for market entry: Insurance Brokers Association of India (IBAI) President Sumit Bohra has stressed the need for insurance companies to take innovative steps and enter the underprivileged senior citizens health insurance market. He suggested making changes such as shorter waiting periods or graded claim payments for pre-existing conditions to increase adequate coverage in this market. Sharad Mathur, MD and CEO of Universal Sompo General Insurance Company, has expressed hope for better access to healthcare. Siddharth Singhal, business head, health insurance, Policybazaar.com, said removing the age restriction will help more senior citizens get better health coverage. Meanwhile, he has urged individuals to review the policy details carefully. Rakesh Jain, CEO of Reliance General Insurance, also agrees with Singhal. He anticipated that this decision will promote innovation in insurance products according to the needs of different age groups.
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