Claimed insurance during pandemic? Be ready to shell out higher premium now

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Given the world health scenario due to the outbreak of Covid-19, people have become increasingly aware of the importance of having good physical and financial health. This increase in health insurance awareness has also led to an increase in demand for health insurance policies. During times of pandemic and economic stress a health insurance cover not only helps people in managing their medical expenses but also in protecting their savings.

Money9 spoke with Anand Roy, Managing Director, Star Health Insurance, on how health insurance has changed after the outbreak of Covid. How has been the claim experience of the industry and can it lead to a rise in premium rates?

Roy said, “Adverse claim experience may lead to an increase in health insurance premiums because ultimately health insurance business is dependent on the losses prevalent in the business. So, as the number of cases and the cost of hospitalisation is going up, the premiums will also go up, but this will depend on company to company and product to product. Different companies may take a different view based on their own experience.”

He added, “On an average, I have seen from the past that whenever there is a product price increase, at least 20 to 30% increase in premiums are generally what can be expected.”