KRA- Health Insurance Cost to more
Biggest non-life insurer hikes med rates by 25%
Mumbai: India’s largest nonlife insurer New India Assurance (NIA) has increased premium on health insurance by an average of 25% for individuals. Along with the revision in rates the company has done away with the rate differential based on region and has introduced a uniform rate across the country.
Announcing the company’s results on Friday, chairman G Srinivasan said that although the ratio of claims to total premium in health insurance had improved from 116% to 105% following an increase in group rates, it continued to be a loss-making business. Despite the underwriting losses New India Assurance has reported a net profit of Rs 1,008 crore for FY17—an increase of 22% over Rs 829 crore in FY16. Besides being the largest non-life company, NIA is also the largest health provider in the country.
The Insurance Regulatory and Development Authority of India (IRDAI) allows companies to revise their rates once every three years to keep up with medical inflation. New India Assurance had last revised rates on individual health insurance five years ago in 2012.
( Source : Economic Times. 5th May 2017 )
