Health insurers raise rates to fight inflation, from HDFC to Star Health

In Short: Rising medical inflation and shorter waiting periods for pre-existing diseases are the reasons behind premium increases for health insurance plans offered by HDFC Ergo, Star Health, Niva Bupa, and New India.Star Health, Niva Bupa, HDFC Ergo, and New India are increasing

Major health insurance providers in India, including HDFC Ergo, Star Health, Niva Bupa, and New India Assurance, are increasing premiums for their health insurance products.

The reasons cited for the premium hikes are rising medical inflation and a reduction in the waiting period for pre-existing diseases from 4 years to 3 years. The Insurance Regulatory Development Authority of India (IRDAI) has also reduced the moratorium period from 8 years to 5 years, which means policyholders will be entitled to have all their claims paid by the insurer after 5 years of continuous premium payments.

A survey found that 52% of health insurance policyholders said their premiums had increased by over 25% in the last 12 months, with 21% indicating an increase of 50% or more.