The Insurance Regulatory and Development Authority of India (IRDAI) has taken steps to curb the steep rise in health insurance premiums for individuals aged 60 and above. The regulation came into effect immediately upon the issuance of the order.
"Senior citizens, with their limited sources of income, are the most vulnerable age group and face the greatest impact from sharp increases in health insurance premiums. This issue has been a key focus for IRDAI and remains a significant regulatory concern," IRDAI stated.
Under the new rule, insurance companies must obtain prior approval to increase premiums by more than 10%. Additionally, IRDAI approval is now mandatory for the withdrawal of health insurance policies for adults.
However, concerns remain that insurers may compensate for the potential loss of revenue by increasing premiums on other policies.
Recently, the Centre introduced schemes to provide free medical treatment for senior citizens. In response, private health insurance companies have taken steps to rein in premium hikes.
The government hopes this move will offer greater financial independence to senior citizens, helping them enjoy a more secure and dignified life in their later years.
Additionally, IRDAI has instructed insurance companies to implement common hospital empanelment and negotiate package rates similar to those under the Pradhan Mantri Jan Arogya Yojana (PMJAY).