Health plan: Compare features, costs; port if you find better deal

Combine base policy with super top-up; buy multi-year policy to cope with rising health insurance premiums

- KARTHIK JEROME & BINDISHA SARANG

Health insurance premiums are on their way up. A survey of 11,000 owners of personal health insurance policies by LocalCircles found that 52 per cent had witnessed an over 25 per cent increase in their renewal premiums in the past 12 months.

An index (based on the average premiums of India's top five health insurance providers) compiled by insurance distribution platform PolicyX shows that premium rates for new policies rose 5.54 per cent year-on-year (Y-OY) in the first quarter of 2024.

High medical inflation

One major reason for escalating premiums is medical inflation, which has averaged between 12 and 15 per cent per annum in recent years, and resulted in larger-sized claims. "It is driven by advancements in medical technology and improved healthcare facilities, which have resulted in higher treatment costs," says Rakesh Jain, chief executive officer, Reliance General Insurance. Sophisticated procedures, which are lifesaving, also, at times, push up costs.

Manish Dodeja, head-claims and underwriting, Care Health Insurance, attributes rising hospital rates to increasing costs of drugs, implants, and other inputs.