The IRDAI has clarified that it permits general and health insurers to change the base premium by up to +/-5% of the originally approved premium rate in order to comply with the guidelines on standardisation of exclusions.
“As of 30 September 2020, out of 388 products, premiums were increased by general and health insurers by up to 5% of the then prevailing rates only in the case of 55 products,” the IRDAI said in a circular.
The regulator made the clarification following media reports that insurers increased health insurance premiums because of regulatory changes to medical insurance coverage. For instance, insurers have to expand coverage to include mental illnesses, internal congenital diseases, and genetic disorders, etc.
The IRDAI’s notification clarifies that its decisions did not have a huge impact on medical insurance premium pricing.