PREMIUM PAIN

WITH INCOMES FALLING AND HEALTH INSURANCE PREMIUM RATES RISING SHARPLY, SENIOR CITIZENS ARE STRUGGLING TO COPE. HERE ARE SOME WAYS TO MANAGE HEALTH INSURANCE COSTS

- TEENA JAIN KAUSHAL

WHEN RAM SINGHAL, a 68-year-old retiree, received the renewal letter for his health insurance policy, he didn’t think much of it. But on reading it, he found that his premiums had gone up significantly. “My premiums have jumped by 30 per cent. I am exploring options on how to manage them,” he says.

Health insurance premiums have risen sharply over the past few years, with the rise in health insurance claims. Per the latest annual report of the Insurance Regulatory and Development Authority of India, there is an increase in incurred claims ratio (the proportion of claims paid by health insurers against total premiums received) of health business—from 94 per cent in 2020-21 to 109 per cent in 2021-22.

“Health insurance claims have risen in the past few of years. Post Covid-19, we have seen a jump of around 10-30 per cent across age groups. Senior citizens have been the hardest hit as they are already paying high premiums and have no regular income,” says Siddharth Singhal, Business Head of Health Insurance at Policybazaar.com. Premiums for senior citizens are generally higher because a large part of people in this segment typically suffer from some form of preexisting disease. This is also why some insurers are hesitant to offer seniors health insurance policies.