Can a Health insurance company increase premium whenever they want ?

POSTED BY atul tikhe ON May 12, 2014 11:30 pm COMMENTS (3)

Hi,

I have purchase medical insurance from “New India Assurance ” in May 2010. The plan is  Mediclam 2007 policy for my family. Suddenly this year agent told me that medical insurance for the year has been increased by the company itself.  Last year I was paying around 17K/year now I have to pay 24K/year. I would like to know can Insurance company change its premium (apart from age change means as age increased premium also increased) without any concern of the customer.

I can understand for new customer they can ask for more premium but for old customer who are regularly paying the amount and not availing any hospitalization claim till now for them it is additional burdon.

Any body clarify my doubt.

Thanks in advance.

Thanks,

Upendra

 

 

3 replies on this article “Can a Health insurance company increase premium whenever they want ?”

  1. ashalanshu says:

    Dear Atul, please check that the prem. offered to you is high only or it’s common for the age band?

    Then only complain.

    Thanks

    Ashal

  2. atul tikhe says:

    Hi Ashal,

    Thanks for quick reply. Now age band is 40 to 45. Just entered in this range this year.
    So I understand that my premium will increase beacuse of age but the question is how insurnace company can increase the basic rate without telling to customer. You can see the jump is almost of 7K [17K to 24K]. Even if with age increase the corresponding increase in premium should not be that large.
    The increase include increase due to age + increase in basic rate.
    My concern/question is about how they can increse these basic rate for old customer suddenly without giving any notice to them.

    Please let me know.

    Regards,
    Upendra

  3. ashalanshu says:

    Dear Upendra, the product has been with you for past many years but what is your age band now?

    Thanks

    Ashal

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