IRDAI has directed companies offering health insurance policies not to hike premium by making changes to the existing policies at the time of renewal.
This has come after IRDAI found instances of hike in renewal premium by including add on features in the existing policies.
IRDAI said, “General and health insurers are not allowed to modify the existing benefits, (or) add new benefits in the existing products which leads to imposing an increase in premium. However, it is clarified insurers are permitted to effect minor modifications as stipulated in the consolidated guideline on product filing in the health insurance business. Addition of new benefits/upgradation 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, said IRDAI in a circular.
Minor tweaking that does not lead to increase in renewal premium has been permitted by the insurance regulator.