With losses mounting in health insurance portfolio due to higher claims, Oriental Insurance Company is in the process of hiking premium rates for its Individual Mediclaim Policy by upto 30 per cent for people in the higher age group.
"We will relaunch the the Individual Mediclaim Policy by repacakaging it," Oriental Insurance Company Chairman M Ramadoss said in New Delhi.
The company has sent the repackaged mediclaim product to the Insurance Regulatory and Development Authority for Approval, Ramadoss said.
The proposal states that the premium rate for people in the higher age group (above 45) will go up by 20-30 per cent, middle age group (20-40) the rate will remain same while the rate for youngsters (below 20) will be 5-10 per cent less.
For example, if a person above 45 years pays Rs 3,000 per annum for a sum assured of Rs 1,00,000, the new rate will be 3,900 for the same policy.
Similarly, if a young person was paying Rs 3,000 for a sum assured of Rs 1,00,000, the person will pay Rs 2,700.
"We will encourage more young persons to take mediclaim policy," OIC Financial Advisor G Viswanathan said.
The company is incurring heavy losses in health portfolio due to higher claims and wrong interpretation of norms ands conditions leading litigations, he said.
OIC has proposed for slight product modification like definitions of what is pre-existing disease, condition,etc.
The incurred claim ratio in health portfolio of the company has increased from 77.29 per cent in 2002-03 to 99.29 per cent in 2003-04, to 113.63 per cent in 2004-05, to 118.23 per cent in 2005-06.
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