FAQ

Recently, a customer reached out about a surprising jump in health insurance premiums. His premium in March 2021 was ₹22,487. By March 2024, it had risen to ₹34,245. With the government removing GST on health insurance, he expected his renewal premium to drop. Instead, it climbed even higher—to ₹37,890. After factoring out GST, the increase was nearly 25%, wiping out any benefit from the GST waiver. If this sounds familiar, you’re not alone. Many face the same shock at renewal. So, is this normal? And what can you do if your premium seems unfairly high? ​ Why Do Premiums Increase? There’s rarely a single reason. Usually, several factors combine, most unrelated to your personal health. Age-band pricing: Insurers group ages into bands (e.g., 36-40, 41-45). When you cross into a higher band, premiums jump sharply, especially after 50, because health risks rise with age. Medical inflation: Healthcare costs in India rise about 10-14% annually. Hospital charges, medicines, and procedures all get more expensive, pushing premiums up—even if you haven’t made claims. Claims experience of the entire group: Your premium reflects the overall claims paid by the insurer for that plan. If claims rise, insurers raise base rates for everyone. What Can You Do? Here’s how to handle a surprising premium hike practically: Ask your insurer for a detailed breakup: You have the right to know why your premium increased—whether due to age-band jumps, product repricing, or added loadings. Request this in writing. Many don’t ask, but you should. Review if loadings are justified: Loadings added for specific health conditions might be removed if the condition is now controlled. It’s worth asking your insurer to reconsider. Consider portability: If your premium is too high, you can switch insurers while keeping your waiting periods. But compare carefully—not just premiums but claim settlement quality too. Don’t reduce your sum insured to save money: Cutting your coverage may seem like a quick fix, but with medical inflation, a smaller cover buys less over time, leaving you under-protected. Look for low deductible plans: Some insurers offer deductibles like ₹25,000 or ₹50,000, where you pay initial costs but get a significant premium discount—sometimes up to 25% off. Thinking Long Term Healthcare inflation is real, and demand is rising as private equity invests more in hospitals. Costs are expected to rise sharply, making insurance less affordable in the future. A smart strategy is to have a base cover of ₹10 lakhs and then add a super top-up plan for higher amounts. Over time, inflation means your base cover’s value will erode, but if you save wisely, you can handle smaller expenses yourself while still protecting against major bills. ​ If you’re confused by your renewal premium or want advice on your insurance plan, don’t hesitate to reach out to experts. Premium shocks are common, but understanding the reasons and options can help you make the best choices. ​ Feel free to share this with anyone facing surprise premium hikes—and if you have questions or feedback, just reach us at the world’s unique mobile number which is easy to remember ie “9insurance”. Each character denotes the number on your phone dialer which is “9467872623”. ​ Most of our customers are NRI, OCI & SHNIs who have benefited from our experience. ​ We are medical insurance specialists with over 30 years of experience.