Pair base policy with topup to combat rising health premiums

Buying a multi-year policy will also help you rein in costs

- SANJAY KUMAR SINGH & KARTHIK JEROME

Health insurance customers will face higher premiums as insurers implement hikes.

HDFC Ergo General Insurance has recently raised premiums for its flagship product, Optima Secure. New India Assurance has also announced upcoming hikes across all its products.

The premium increases range from 4 to 15 per cent, with senior citizens likely to experience larger hikes.

Factors driving premiums up

Several factors have contributed to the rise in health insurance premiums. The Insurance Regulatory and Development Authority of India (Irdai) has recently revised the terms and conditions of health insurance policies.

Previously, the maximum waiting period for pre-existing diseases (PEDS) was four years; Irdai has reduced it to three years.

"When the waiting period ends, claims begin to come in. Insurers expect claims to start earlier due to this change and are factoring it into their prices," says Kapil Mehta, co-founder, SecureNow.

The moratorium period, after which insurers cannot reject a claim except in cases of fraud, has also been reduced from eight years to five. "This change entails a cost for insurers," says Mahavir Chopra, founder, Beshak.org.

Earlier, health insurance products had a sub-limit on Ayush treatment.

"The regulator has mandated that Ayush should be covered up to the entire sum insured," says Praveen Chaturvedi, general manager, Insurance Samadhan.