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Mahesh

23/04/24 09:37 AM IST

Health insurance for all ages

In News
  • Senior citizens, even if they are 80 or 90 years old, will now be able to buy health insurance, irrespective of existing medical conditions.
  • This is a huge relief for all Indians above the age of 65.
New Provisions
  • The regulator has told insurers to “design products specifically for senior citizens, students, children, maternity and any other group as specified by the Competent Authority (IRDAI)”.
  • The insurers “shall endeavour to offer coverage for persons with all types of existing medical condition.
  • India is a predominantly young country currently, but the share of the population above the age of 60 is projected to reach 20% by 2050.
  • Insurance companies mobilised Rs 1.09 lakh crore in all as premium in the year ended March 2024.
  • Government schemes accounted for Rs 10,577 crore, retail customers Rs 42,200 crore, and group policies Rs 55,020 crore.
Age limit
  • IRDAI norms put the ceiling for buying health insurance at age 65.
  • Thereafter, insurance cover came with tougher conditions, including compulsory pre-insurance health check-ups, and no cover for pre-existing ailments.
  • This is because susceptibility to illnesses increases after a certain age, regardless of how healthy an individual customer may be.
  • Also, premiums increased with age, so customers older than 50 were forced to make do with limited cover, and accept the removal of certain insurance riders.
  • A large number of senior citizens have no coverage, or coverage that is not enough to foot their hospital bills.
Challenges
  • Insurers may not be enthusiastic about catering to the 65-plus age bracket, and even if they do, the terms and conditions of such insurance policies may not be favourable to the customer.
  • A 70-year-old individual who may now have the opportunity to buy health insurance for the first time, will likely encounter stringent terms, exclusions, and possibly high premiums.
  • Since people in the 65-plus age group often have pre-existing conditions, insurers will carefully evaluate the profitability, sustainability, and scalability of their policies for this demographic.
  • IRDAI has prohibited raising premiums because of higher claims. But it has allowed insurers to raise premiums on portfolio basis, and has asked insurers to offer discounts to individual policy holders with good claim experience.
Source- Indian Express

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