Don't overcharge senior citizens: Irda

The Insurance Regulatory and Development Authority (Irda) has warned all public sector general insurance companies not to charge higher premium from senior citizens on medical insurance policies or mediclaim.

According to industry sources, a leading public sector general insurance company is charging senior citizens almost Rs 1,000 extra in premium.

For example, for a sum assured of Rs 1 lakh, the company is charging Rs 2,700 in premium compared to Rs 1,500 before the revision. It may be recalled that all public sector general insurance companies had revised mediclaim premium in April 2007.

Irda further added, "The Authority has received several complaints from senior citizens that renewal premiums are exorbitant. Senior citizens should not be compelled by insurance companies to migrate to other health insurance products if it is to the disadvantage of senior citizens."

The regulator has asked all chairmen of public sector insurance companies not to exceed 50-75 per cent of premium charged prior to the revision.

Meanwhile, the regulator has created a separate cell to attend to grievances of senior citizens in respect of non-renewals or exorbitant increases in premium payments on mediclaim policies by public sector general insurance companies.

Pension premia contributed about 22 per cent to the total premium income of insurers last year.