The allegation against these companies is that they have increased the health insurance premium uniformly across the country. This was a kind of corporatization. Apart from this, their claim rejection is also very high. Both the premium increase and claim rejection are around 30 percent.
IRDAI has started investigation against 5 private insurance companies. IRDAI has taken a tough stand on the issue of expensive health premium and claim rejection. 5 private insurance companies of the country were on the radar of insurance regulator IRDAI (Insurance Regulatory and Development Authority) for a long time. Now IRDAI has started investigation on all of them. If found guilty in the investigation, IRDAI can also impose penalty on these companies. Let us tell you that investigation is already going on against Star Health Insurance.
Actually, the allegation against them is that these companies have increased the health insurance premium uniformly across the country. This was a kind of corporatization. Apart from this, their claim rejection is also very high. Both the premium increase and claim rejection are around 30 percent. The Finance Ministry is very angry with the attitude of insurance companies, especially private insurance companies. The Finance Ministry itself had directed IRDAI to investigate these companies.
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Health insurance companies are charging unreasonable increases in annual premiums despite low claim settlement ratios, which could lead to severe punitive action by the regulator, government sources said. Regulatory action is expected against some private insurance companies in a month, the sources said without naming the firms. According to the source, IRDA has already issued show cause notices to several private insurance companies on concrete cases and one or two companies will be penalised soon to set an example for the entire industry.
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