Health insurance is becoming increasingly expensive in the country. The government has asked the insurance regulator IRDAI to increase monitoring of insurance companies. Last year, health insurance premiums have increased very rapidly. This has slowed down the pace of insurance coverage.
New Delhi: The Finance Ministry has asked insurance regulator IRDAI (Insurance Regulatory and Development Authority of India) to increase its monitoring of insurance companies. Be more strict in matters of claim settlement and redressal of grievances. These instructions have come at a time when health insurance premiums have increased very rapidly last year. Due to this, the pace of insurance coverage has slowed down in a market where very few people still have insurance.
According to ET, people associated with this matter said that this was clearly stated in a meeting between senior officials of the Finance Ministry and representatives of IRDAI last week. An official, on the condition of anonymity, said that the government has clearly expressed its concern especially on the increase in insurance premium in health insurance, complaints regarding claim settlement and corporate governance issues (especially some stand-alone health insurance companies SAHIs).
Complaints are being received
- Instructions: The Finance Ministry has asked insurance regulator IRDAI to speed up monitoring, claim settlement and grievance redressal.
- Reason: This is because health insurance premiums increased rapidly last year, which slowed down the pace of insurance coverage.
- Concern: Government expressed concern over increase in insurance premium, increasing complaints of clean settlement.
This year, health insurance premiums have increased by about 15 percent in many cases. Due to this, many policy holders have abandoned their policy or have not extended it. According to the latest data, the total insurance coverage in India was 4.2 percent in 2021-22, which has come down to 4 percent in 2022-23. According to the report, meanwhile, the coverage of life insurance has fallen from 3.2 percent to 3 percent. While non-life insurance remains at 1 percent.
The official said that the government wants immediate attention to these issues. If needed, some new rules and regulations should also be made before the Insurance Amendment Bill is passed. The Finance Ministry has expressed hope that the board of IRDAI will reconsider these issues. Let us tell you that the Insurance Amendment Bill proposes to allow 100 percent foreign investment in this sector. This bill also allows companies to take composite licenses and appoint foreigners to important management positions in Indian insurance firms.
An official said that IRDAI has been without a chairman since March this year. A section of the government wants an experienced bureaucrat to be given this responsibility who can handle these issues directly. He also said that the government wants IRDAI to keep a close watch on the results of the board meetings of insurance companies and ensure that all the necessary rules and regulations are being followed.
- This year the health insurance premium has increased by about 15%.
- Total insurance coverage drops to 4% in 2022-23.
- Total insurance coverage stood at 4.2% in 2021-22.
- Life insurance coverage fell from 3.2% to 3%.
- Non-life insurance coverage remained stable at 1%.
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