Get <strong>₹5 Lac</strong> Health Insurance starts <strong>@ ₹200/<span>month*</span></strong>
Get ₹5 Lac Health Insurance starts @ ₹200/month*
Get ₹5 Lac Health Insurance starts @ ₹200/month*
250+ Plans 18 Insurance Companies
₹ 5 Lakh Coverage @ ₹ 10/day
7 Lakh+ Happy Customers

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Increased Medical Costs to Hike Insurance Premiums

The rising medical inflation may lead to an increase in medical insurance premium as insurers are planning to hike the premiums which could be between 10% and 14%.

One of the main reasons for the increased medical costs is the emergence of private sector hospitals built with borrowed funds and the use of expensive non-invasive medical procedures. The rising wages for the paramedical staff and fees paid to consulting doctors is also a contributing factor.  

With the rise in the cost of medical procedures, the premium goes up for the same sum insured. For instance, the cost of a normal delivery (childbirth) in a reputed hospital has increased from Rs 25,000 to Rs 40,000 in Mumbai, while in Chennai it has risen to Rs 40,000 from nearly Rs 20,000 three years ago. "We had revised it (premium) in 2013 and (current) medical inflation which is 14% as per our internal assessment, it is only natural that we increase our premium rates," said MS Sreedhar, MD of Royal Sundaram. His company is also working on rationalizing the several mediclaim policies. "For now we have too many mediclaim policies, we are working towards rationalizing the several policies into fewer ones," he said.

"India's trend continues to be one of the highest in the region. The numbers are understated due to competitive pricing pressures in the India marketplace," said a report by Towers Watson, a firm that specializes in HR practices used for wage fixing. “Medical inflation is running higher than the salary increase, higher than the general inflation,” Towers Watson added.

Written By: PolicyBazaar - Updated: 11 December 2020
Search
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

You May Also Want to Know About

Top Maternity Insurance Plans

Top Maternity Insurance Plans

Top Maternity Insurance Plans Maternity or pregnancy is an important phase of life, and one needs to prepare in advance to embrace parenthood. Though rearing a child is an expensive affair and may require good financial backup to meet the requiremen...
Health Insurance Claims Ratio- Things You Should Look Before Buying Health Insurance

Health Insurance Claims Ratio- Things You Should Look Before Buying Health Insurance

There has always been a doubt in customers mind about whether the private company will keep its side of the bargain i.e. it will settle the claim or not. A customer spends premium annually which will cover his medical expenses but there’s always ...
Best Health Insurance Plans for Senior Citizens in 2021

Best Health Insurance Plans for Senior Citizens in 2021

Best Health Insurance Plans for Senior Citizens in 2021 Considering the increasing percentage of medical inflation in India, it has become an absolute necessity to buy adequate health insurance for your loved ones. And if they are your elderly pare...
Covaxin vs. Covishield vs. Sputnik vs. Pfizer: Which one should you get?

Covaxin vs. Covishield vs. Sputnik vs. Pfizer: Which one should you get?

Covaxin vs. Covishield vs. Sputnik vs. Pfizer: Which one should you get? Covaxin vs. Covishield vs. Sputnik vs. Pfizer, the speculation continues regarding the difference between the efficacies of these COVID-19 Vaccines against the Coronavirus. If...
Here’s the Difference between Health Insurance and Mediclaim

Here’s the Difference between Health Insurance and Mediclaim

Here’s the Difference between Health Insurance and Mediclaim Imagine you’re looking for a job change. You get an interview call for a job. What will be your plan of action? Will you get your resume ready and prepare for the interview or you wi...
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL