Sharp Discounts in Group Health Insurance are on the Way

22nd April, 2014; MUMBAI: The practice of cross-subsidizing group health insurance is likely to come to an end with the insurance regulator's intervention to check the heavy discounts in this sector. IRDA's intervention to restraint heavy discounts in group health insurance is likely to force general insurance companies to stop the practice of cross-subsidising the portfolio. Increasing competition among general insurers has resulted in severe undercutting in the segment despite of losses. The premium rates have been declined by 5-10% so far this fiscal according to industry experts.

Read More

Get ₹5 Lac Health Insurance starts @ ₹200/month*
Tax Benefitup to Rs.75,000
Save up to 12.5%* on 2 Year Payment Plans
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

Get insured from the comfort of your home No medicals required
I am a

My name is

My number is

By clicking on ‘View Plans’ you, agreed to our Privacy Policy and Terms of use
Close
Back
I am a

My name is

My number is

Select Age

City Living in

    Popular Cities

    Do you have an existing illness or medical history?

    This helps us find plans that cover your condition and avoid claim rejection

    Get updates on WhatsApp

    What is your existing illness?

    Select all that apply

    When did you recover from Covid-19?

    Some plans are available only after a certain time

    Group health insurance covers pre-existing diseases from day one so this cover is attractive for both the employer and the insurer. It brings a large number of employees for insurance company under its cover in one go

    Insurance companies generally cross-subsidise group health insurance as they get other businesses too like property and fire insurance from corporate.

    Individual health insurance is a profitable segment for most of the insurance companies and the premium rates have also been raising over the last three years.

    According to the chairman of the Insurance Regulatory and Development Authority (IRDA), TS Vijayan, many complaints had been received on the unfair discounts given to the group insurance policies. Therefore, they wanted to ensure that there are no distortions in the paid premiums for group and individual policies.

    The IRDA has asked for details on the pricing structure of these policies from insurance companies through the General Insurance Council. A meeting with all non-life insurers is planned on May 16 to address the issue.

    This move of the regulator will ensure that general insurers hike prices in the group health insurance segment according to a senior official at a private general insurance company.

    Public interest litigation has been filed by an activist, Gaurang Damani in the Bombay High Court seeking transparency in health sector. Gaurang said that general insurers in order to retain the accounts give priority to group health insurance customers and at the retail level, individual customers are not in a position to take on the insurer.

    With five standalone health insurance companies and 23 general insurance companies, the health sector in India is highly competitive.

    Search
    Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

    Health insurance articles

    Recent Articles
    Popular Articles
    Does Health Insurance Cover Brain Tumour?

    17 May 2022

    The brain is one of the most important organs in your body. It is...
    Read more
    12 Tips to Avoid Common Health Problems During Summers

    12 May 2022

    India experiences a hot and dry summer season that lasts for up to...
    Read more
    Does Medical Insurance Cover Hearing Aids?

    12 May 2022

    The number of people who require hearing aids continues to grow...
    Read more
    Are Accidental Injuries Covered by Health Insurance in India?

    12 May 2022

    Accidents are unpredictable. Getting injured in an accident not...
    Read more
    6 Most Effective Ways to Prevent Viral Fever

    12 May 2022

    A change in weather can bring respite from the scorching summer...
    Read more
    PMJAY Scheme: Ayushman Bharat Yojana Eligibility & Registration Online
    Prime Minister Shri Narendra Modi announced the launch of (PMJAY) Ayushman Bharat Yojana in his Independence...
    Read more
    Best Health Insurance Plans in India 2022
    Finding the best health insurance plan from so many different health insurance companies can get confusing for many...
    Read more
    Best Maternity Insurance Plans
    Maternity insurance offers comprehensive coverage for medical expenses incurred during pregnancy, including the cost...
    Read more
    Best Health Insurance Plans for Senior Citizens in 2022
    Considering the increase in medical inflation in India, buying adequate health insurance for your loved ones has...
    Read more
    10 Major Benefits of Ayushman Bharat Yojana
    Pradhan Mantri Jan Arogya Yojana (PM-JAY) is the second component under Ayushman Bharat Scheme. PM Narendra Modi...
    Read more
    top
    Close
    Download the Policybazaar app
    to manage all your insurance needs.
    INSTALL