IRDA asks PSUs not to force elders to switch to new health plans

MUMBAI:
Insurance regulator Insurance Regulatory and Development Authority (IRDA) has
asked state-owned coverage companies not to coerce senior citizens to switch over to
a new wellness insurance program with less benefits at the clip of renewal of
policies. The regulator have reiterated that insurance companies cannot rise rates on
mediclaim policies by more than than 50-75% of the former year’s premium,
following an harmful claims experience. With ailments pouring in
from senior citizens, the regulator have put up a particular cell to look into their
complaints. The regulator have appointed Roentgen Srinivasan as military officer on particular duty,
in complaint of the cell based at IRDA’s Hyderabad office. Senior citizens
who have got jobs with their mediclaim renewal can reach this special
cell. The thought was mooted by the IRDA panel on wellness insurance
issues faced by senior citizens. Senior citizens’ association have been
clamouring for a particular cell, given that wellness coverage business relationships for over 15%
of non-life premium. The IRDA panel had also recommended a wellness coverage pool
under the auspices of IRDA to take over high hazards cases, including the 1s whose
renewal insurance premium is hiked by over 40%. A similar pool bes for
motor third-party liability insurance. IRDA is yet to take a position on the pool
for rejected wellness coverage covers. Incidentally, the regulator had set a
similar cap on rates for third-party liability coverage a couple of old age ago,
even after it was decided to increase rates by over 100%. In a
circular to public sector coverage companies, the regulator said that PSUs have
already revised the insurance premium rates in regard of mediclaim policies in April
2007. “The authorization received respective ailments from senior citizens that
renewal insurance premiums charged to them were exorbitant. The authority,
therefore, advised all the public sector full general coverage companies that: The
loading of insurance insurance premiums if justified for renewals of mediclaim policies issued to
senior citizens shall not transcend 50-75% of the premiums charged prior to the
revision.” IRDA have also said, “Senior citizens shall not
be compelled by the coverage companies to transmigrate to other wellness insurance
products, if it is to the disadvantage of senior citizens. The above
instructions are applicable to renewal lawsuits only. The authorization has
now created a separate cell to go to to the grudges of senior citizens in
respect of non-renewals Oregon extortionate additions in coverage premium of mediclaim policies
of public sector full general insurance companies,” the circular
said.