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Health insurance price indices remain steady in December quarter: Report - Mint

The health insurance price index remained steady in the December quarter at 25,124, reflecting no change in the premium prices of health insurance since the first quarter, according to Insurance Price Index data compiled by PolicyX.com, an insurance web aggregator.

In the fourth quarter, an average person of 26 years paid 8,274 premium annually for 5 lakh sum insured and 10,403 premium annually for 10 lakh sum insured for the one-adult category.

The health insurance premium does not increase proportionately with the sum insured amount. Quarter 4, 2021 showcases that a 36-year-old male paid 9,519 for the sum insured of 5 lakh and the same person paid 12,183 for the sum insured of 10 lakh on an average. In this case, the premium increased only 28% in spite of a 100% increase in the sum insured.

Since it has become quintessential to secure every member of the family under health insurance for financial aid regardless of their age, buying a family floater plan stands out as a cost-effective option. The addition of another member in the floater plan leads to a minimal increase in the premium. As per the report, a premium paid for two adults of 36-year-old was 13,921 and the premium paid for two adults and one child of the same age category was 16,530.

Of the five companies, forming the index, the variance observed in premiums among the health companies is quite high (ranging from 59% to 76% for different age groups) as compared to variance observed in term insurance companies. This is primarily because of the fact that coverage, features, and benefits differ significantly for health insurance whereas term insurance is usually simple with similar benefits in case of death.

The premium prices for health insurance are average prices taken from the leading five health insurance companies for all age groups i.e, 26 years, 36 years, 46 years, and 56 years all coverage types i.e, one adult, two adults, two adults + one child, and two adults + two children.

Commenting on the latest report, Naval Goel, founder CEO, PolicyX.com stated, “Contrary to the constant media reports of price increases, the data shows that very few companies have raised prices and the insurance companies have been benevolent towards customers by increasing premium prices gradually. However, the constant increase in claims has also resulted in the tightening of underwriting norms."

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