My father, 82 years old, received a notice to pay 1.2 lacs of premium to renew a 3 lac Medical cover. WIth premiums increasing each year, he may have had to pay more than 3 lacs in the next two years to continue the cover. He was forced to exit the policy, taking a chance with his health cover, presented with an unaffordable option. Four years back he could pay a tenth of that premium for the same cover.

Imagine the plight of a retired senior citizen who, having paid premiums for Medical insurance for years, without making a claim, being asked to pay such high premiums which defy the concept of having a insurance cover.  

The government announcement of 5 lac free cover under Ayushman Bharat has delighted everyone. Will make sense for people who will compromise their parent health care in general wards of hospitals which will not include reputed groups like Fortis, Manipal or Apollo. May not be an option to use for people who can afford better health care, if it remains affordable.

Health Insurance is the most important security for senior citizen.  In a dangerous precedent, which started after covid a few years back, Insurance companies were allowed to increase premiums by justifying their losses (read claims).  

With old people bound to claim more their policies are now priced at a level, where they cannot afford to pay and naturally exit the policy. Allows insurance company in pricing out all old people from health cover and seek new young & profitable customers by offering them lower premiums. This is a dangerous precedent for a country where the people who need the cover may have none or have to contend with govt support of marignal quality.

Insurance is a concept where an claim amount is paid out of contribution of many people who do not claim.  No one knows when one may need to claim so people contribute to create a fund.  When people get older they are more likely to claim due to ageing and failing health. Such claims should be paid out of money collected when they are young and can afford to pay.

Insurers should charge premium basis an average spread over the lifetime of policy holder considering the age.  Earlier the enrollment the lower the premium. They need to be directed to rationalise premiums over the age of an Insured to make sure that their premiums in old age does not become unaffordable.

The Regulator IRDA needs to stop this carnage of destroying health cover for senior citizens and protect the policyholder's interest by asking Insurance companies to rationalise premiums across ages. It should also ask the insurers, to allow the senior citizens, who were forced to discontinue policies in last few years to get back the cover with affordable premiums without any medical test and additional exclusions.