Employee? Taken health insurance from employer, company? ALERT! Very important for you to know this about premium

If you have taken a health insurance coverage through your employer and its premium is being deducted from your salary on a monthly basis then in all likelihood, you may have to pay higher premium for your health insurance cover from now on. Want to know why? This report by Zee Business’ Anurag Shah will explain you the full inside story. 

All those who have purchased a health insurance plan via their employers and are paying premium every month as group insurance premiums from their salaries will now have to pay higher premiums, Shah says. This is because, most of the insurance companies have now increased the premium of Group Insurance policies by 25-30 per cent.  

Shah said this citing his top sources.  

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The increase in premium of group health insurance plans have been done in the wake of the coronavirus pandemic that has led to filing of a greater number of insurance claims, Shah said.  

Another reason for increasing the premium amount is the growing loss in the group insurance business, Shah said.  

While the insurance regulator – Insurance Regulatory and Development Authority of India (IRDAI) - has directed the insurance companies not to increase the insurance premium for individual health plans, the insurance companies do not require an IRDAI nod to increase the premium of group insurance plans.  

In the aftermath of Covid-19, most big companies have increased the cover of insurance plans for its employees. Many small companies have also started taking Group insurance health policies to protect their employees.  

Key takeaways from the report  

- Group Insurance premiums may rise by 25-30 per cent now: Sources. 
- Covid-19 claims and loss ratios are main reason behind the surge in premiums.   
- IRDAI has directed insurance companies not to increase premium cost for individual health plans. 
- Insurance companies do not require IRDAI permission for increasing premiums on group health insurance plans. 
- The demand for group health insurance plans from companies growing significantly. 
- Even small companies noy going for group insurance cover for their employees.