Health Insurance: As the IRDAI rules widen the insurance net, are higher premiums in the pipeline?

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health insurance policies, premiums for health insurance policies may see a significant jump in the near future. It is worth noting that the Insurance Regulatory and Development Authority of India (IRDAI) removed the age bar recently to buy health insurance. This means individuals can buy new health insurance even after 65 years of age.

Earlier, individuals falling in this group were generally kept outside the purview of insurance. ALSO READ | IRDAI omits age restriction on health insurance for 65-year-olds in India: All you need to knowInsurance companies need to introduce health insurance products which take into account the unique needs of demographic groups, particularly senior citizens, students, children, and maternity needs.Additionally, the waiting period for pre-existing diseases (PED) was cut down from 48 months to 36 months. After the expiry of this period, all diseases will be covered — whether or not they were revealed at the time of buying the policy.Although these new regulations are set to make health insurance more inclusive, there could be more competition, more options and perhaps – higher insurance premiums.Let us understand this in detail.

Insurers have traditionally been reluctant to offer insurance to vulnerable groups such as those suffering from chronic diseases and older populations because they are more likely to make a claim. Higher the rate of claim, higher would be the cost for insurance companies. This cost can understandably be compensated by charging a higher insurance premium.We spoke to a few industry experts and some believed that there could be some adjustments in premium.