Don’t hike insurance coverage premia, insurers instructed

New Delhi, March 18

Irdai has directed health insurance providers not to make any changes to existing health policies that may lead to a rise in premium for policyholders. The directions are also applicable for personal accident and travel insurance cover.

In a circular, the Insurance Regulatory and Development Authority of India (Irdai) said general and standalone health insurers are not allowed to modify existing benefits and add new benefits in the existing products, which leads to imposing an increase in premium.

The watchdog also said insurers are permitted to effect minor modifications in accordance with ‘Consolidated Guidelines on Product filing in Health Insurance Business’ issued in July last year.

“Addition of new benefits/upgrade of existing benefits may be offered as add-on covers or optional covers with a standalone premium rate to ensure an informed choice to the policyholders,” Irdai said in the circular this week. — PTI

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