Health Insurance News: Despite the reduction in GST, the central government has increased health insurance premiums by 10% to 37%. This increase is due to medical inflation and new features, which are directly impacting the pockets of the general public…
Health Insurance Premium Hike: The central government drastically reduced GST rates effective September 22nd, leading to a drop in prices for everything from fuel to vehicles. However, even after this, most insurance companies have increased their premiums, impacting the general public’s pockets. It’s worth noting that the reduced GST effective September 22nd has eliminated the 18 percent GST on health premiums, but the general public doesn’t seem to be benefiting from it.
How much have premiums increased?
Health insurance companies have increased premiums by anywhere from 10 percent to 37 percent. Suppose you purchased a health insurance policy last year with an annual premium of ₹10,000. If the company increased the premium by 10%, you’ll now have to pay ₹11,000 for the same policy. If a company increased the premium by 37%, the same policy would now cost ₹13,700.
Tata AIG General Insurance Company has increased health insurance premiums by approximately 37 percent compared to last year. When questioned about the increase, the company stated that this was due to rising medical costs. The company also clarified that the increase was in accordance with IREDA (Insurance Regulatory and Development Authority) guidelines. However, when asked directly whether permission was obtained from IREDA for the 37 percent increase, company representative Ankit Yadav did not provide a clear answer.
Experts say that companies are increasing premiums by adding new features to their policies. The public must understand that purchasing such policies will impact their own pockets. In some cases, existing coverage is being labeled as a “new feature” and a separate fee is being charged for it.
Insurance News : Insurance premiums have increased despite zero GST, know the reason
