IRDA has declared that after a period of three years, insurers can revise the price of health insurance products based on their experience.
As per the new directive issued by the Insurance Regulatory Development Authority of India (IRDA), insurers can now revise the prices of health insurance products every year, but only three years after it launches in the market.
Once revised, the premiums cannot be changed further for at least one year from date of revision. It should be noted that there are several risk factors such as age and medical conditions that have to be taken into account while calculating the premium for health insurance policies.
IRDA has encouraged insurers to offer discounts on premium based on fitness and wellness criteria. At the same time, they have also instructed insurance companies to avoid providing discounts to policyholders on third-party products regardless of whether they are a part of the policy contract.
The insurance regulator has declared that for a combination of life and health products, the premium component of both should be separately identified and revealed to the policyholders. When it comes to specifically life insurance, insurers have been banned from issuing indemnity products in the market.
To bring about innovation for the benefit of customers, general and health insurers can introduce pilot products only after filing for approval from IRDA. After a period of five years from the date of launch, these pilot products can be converted into regular products or simply withdrawn from the market.