Page 22 - Insurance Times June 2021

across the insurer and varied from one insurer to another. insurer will soon carry a colour code each. The colour codes
Insurers say the hikes are necessary as the IRDAI has asked will indicate the level and degree of complexity of the
them to cover a range of conditions excluded previously. product. To determine whether a health plan is simple or
Regulatory changes in the past one year have made it complex, a set of scores will be given to the product based
mandatory for insurers to cover Covid-19, HIV/ AIDs, on the terms and conditions of the insurance policy. Factors
artificial life maintenance, mental illness, mental disorders, like the number of optional covers, percentage of co-
age-related degeneration and internal congenital diseases. payment, waiting period, permanent exclusions, number of
treatments, and simplicity of terms will be considered in
The Regulator had approved the new premiums. It is not determining a score for the product. The higher the number
like insurers are arbitrarily deciding to increase rates. of optional covers and percentage of co-payment, the higher
However, it is argued that insurers are raising rates by will be the score. Products with a score of 2 or less will be
pricing policies at the highest end of the rate band approved classified green, more than 2 and less than 4 will be orange,
by the regulator, instead of pricing them mid-range. Another while those above 4 and up to 6 will be red. Where there
industry trend is the change in age-band pricing. Previously, are multiple options for a certain health plan, the average
the age bands which determine premiums payable were, of the options shall be considered. For example, if a health
for instance, 25-35, 35-45, 45-55. As policyholders crossed product has two options of 10% and 20% co-payment, then
an age bracket, there would be a price increase. But the average co-payment shall be 15%.
increasingly, the market has been flooded
with new products, which have narrower
age brackets of five years.

In the entire non-life sector, standalone
health insurers have seen the largest gains
due to Covid-19 awareness and allied
policy purchase. Data reveals that health
insurance premium income rose 12.97 per
cent to Rs 22,903 crore in the April-August
period, overtaking auto business as the
largest insurance segment. These insurers
saw a 29 percent YoY increase in health
premiums to Rs 6,096.46 crore. Star
Health Insurance was the largest insurer
in this segment with a growth rate of 45.45 percent YoY in
the April to August period, with premiums touching Rs Telemedicine and online consultation
3,182.26 crore.
under health policy:

Aditya Birla Health Insurance saw a 93 percent YoY growth Telemedicine was a developing concept in India but Covid
in health premium to Rs 409.03 crore in this five-month pushed the concept to the forefront as the nation went
period. Another factor that led to the growth in health under lockdown and social distancing became the norm.
insurance has been the availability of more products. A Telemedicine includes offsite medical consultations done
Rs.20 lakh health insurance cover for a 30 year old may cost through telephones, video calls, online chats, etc. As
around Rs. 13,000 for one year. A new digital health and telemedicine became popular in the post-Covid world, the
wellness market place, Vital is offering monthly subscription Regulator asked insurers to cover the medical costs incurred
plan for health insurance just like you pay your monthly EMIs on telemedicine if their health plans offered coverage for
or pay for your Netflix subscription on a monthly basis. doctor's consultations. So, now, health plans have become
all the more inclusive as they cover telemedicine costs too.
Colour codes to decide health insurance With a surge in the number of Covid-19 cases across the
country, the IRDAI has instructed insurers to settle claims
plans: for telemedicine and online consultation under health
To make health insurance more customer friendly, medical insurance policies. As the Covid-19 pandemic continues to
plans offered by a general insurer or standalone health spread across the country, people increasingly prefer online

22 The Insurance Times, June 2021