High premiums not to be charged on policy renewalIRDA has hosted notification on its website stating that several complaints from senior citizens have been received in regard to the renewal premiums charged to them.
12 Mar 2008
The Insurance Regulatory and Development Authority (IRDA) has hosted notification on its website stating that several complaints from senior citizens have been received in regard to the renewal premiums charged to them. The complainants say that the premiums charged by public-sector general insurers are 'exorbitant'. These premium rates were revised by public-sector general insurance companies in April 2007.
IRDA has asked the public-sector insurance companies to revise their renewal premiums such that they are not more than 50-75 per cent of the premiums charged before the revision.
The insurance regulatory body also said that the senior citizens should not be forced to move to another health insurance product, if the revision is to the disadvantage to them, as confirmed by the authority.
To further fix the problem, the authority has now created a special unit addressing the grievances of the senior citizens regarding the non-renewals, or excessive increase in premiums of their mediclaim plans of the public-sector insurance.