The Insurance Regulatory and Development Authority of India (IRDAI) had come up with the clarification on the way in which revision happens in health insurance premium. According to the IRDAI, there are few reports mentioned in social media about a hike in the price of health insurance premiums by general and health insurance companies. There were some of the news objects attributed to the increase in health insurance premiums to certain current regulatory tasks taken by IRDAI.
To comply with the guidelines on standardization of exclusions as a one time measure for seamless transition of existing products, IRDAI clarified that insurers were allowed to change their base premium up to +/- 5 percent of originally sanctioned premium rates. This will ensure the viability and sustainability of the system.
As per the IRDAI, the premiums were increased by general and health insurers up to 5% under the prevailing rates of 55 products out of 388 products as of 30th September 2020. In addition to this, during the year up to 30th November 2020 as part of the periodical modification of their respective products, IRDAI cleared revision in premium beyond 5%in respect of only 5 health insurance products of general / health insurers based on the incurred claims experience. In February 2020, IRDAI carried out amendments in respect of provisions of Guidelines on Standardization of Exclusions in Health Insurance Contracts and Modification Guidelines on Standardization in Health Insurance.
In India, the Insurance Regulatory and Development Authority of India (IRDAI) the statutory body that works to guide and promote the insurance and re-insurance industries. IRDAI was established by the Insurance Regulatory and Development Authority Act, 1999, an Act of Parliament approved by the Government of India. The chairman of the Insurance Regulatory and Development Authority of India (IRDAI) is Subhash Chandra Khuntia and the Chief General Manager is V Jayanth Kumar. The agency headquarter is in Hyderabad, Telangana, and moved to Delhi in 2001. Their mission is to promote, guide, and ensure orderly growth of the insurance industry and to protect the interests of the policyholders.