INDIA’S ORIENTAL DISCOURAGING OLD FROM HEALTH POLICIES

State-owned Indian insurer Oriental Insurance Co has offered reduced brokerage and introduced premium loading in an attempt to discourage older people from buying its mediclaim policies, according to a report in India’s Business Standard . Oriental is said to have told brokers that the premium loading for those aged 50 to 60 will be 50%, while for people over the age of 60 it will be 100%. Broking commission paid on policies sold to people aged between 45 and 55 has been reduced to 45% from 17.5% to 12.5%. No broking commission at all is being paid on policies sold to people aged over 55. Oriental is understood to face claims ratios in the region of 180% for those aged over 55. Oriental has also applied to the Insurance & Regulatory Development Authority for a new health insurance product to be licensed that will allow it to charge a variable premium according to the applicant’s age.