New Delhi: Despite reports suggesting an increase in premiums amid the pandemic, premiums for health insurance were significantly higher during July-September, according to data on the Insurance Price Index for the third quarter of 2021 compiled by insurance web aggregator, PolicyX.com. was fairly stable.
“Health Insurance Price Index kept calm with no change in index value in Quarter 3, 2021. Health Insurance Price Index has remained constant at Rs 25,124 since Quarter 4, 2020. It is no price increase in 5. This is a result of having health insurance companies forming part of the index,” the report said.
Naval Goel, Founder and CEO, PolicyX.com, said, “It is great to see that prices have not increased, despite the fact that the insurance industry was hit by record COVID-19 claims and losses. Although the number of claims has increased due to the pandemic, there has been an increased awareness of the need for insurance among the Indian population, which should help the industry grow rapidly.”
The average premium payable by a 26 year old person across all categories was Rs 16,695 for sum insured of Rs 10 lakh and Rs 13,140 for sum insured of Rs 5 lakh, highlighting the fact that the premium does not increase in proportion to the sum assured Is. In the sum insured from Rs 5 lakh to Rs 10 lakh, the premium increased by 27% as compared to a 100% increase in the sum insured.
Also, adding members to a family floater policy does not increase the premium proportionately. In fact, adding 1 more adult of the same age or younger to the same policy increases the premium by an average of 50%. On adding the first child and second child in the policy, the increase is less – – 11.9% and 13.7% -.
Of the five companies included in the index, the observed difference in premiums was significantly higher among health companies, ranging from 59–76% for different age groups, compared to the variation among term insurance companies.
This is mainly because the coverage, features and benefits differ significantly for health insurance and term insurance.
The reported premiums were compiled on average from five health insurance companies for all age groups – 26 years, 36 years, 46 years and 56 years and covered all types of coverage i.e. 1 adult, 2 adult, 2 adult plus 1 child, and 2 adults plus 2 children.
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