INDIAN HEALTH INSURERS CONTINUE PREMIUM RISES

India-based state-owned National Insurance Co (NIC) has raised the rates on mediclaim policies for over 25s by between 5% and 100% in an attempt to stem the losses incurred in the medical insurance sector. Last October one of the other state-owned insurers, Oriental, raised its rates by a similar amount. The other two state-owned operations — United and New India — have reportedly submitted revised rate proposals to the insurance regulator. The public sector insurers have three-quarters of the medical insurance market in India, but have been experiencing loss ratios of more than 130%. NIC general manager Dilip Burman said that the latest increases should reduce the claims ratio to about 110%. In the over 45 age group, rates were increased by about 50%, while for senior citizens the rates have risen by more than 100%. NIC also said that it would no longer be selling new policies in the 59 to 65 age bracket. United Insurance has reduced the maximum entry age to 55 from 60. Mr Burman noted that rates for policyholders aged under 25 had been reduced by 20%, compared with cuts of between 10% and 15% at Oriental. NIC is also offering a 6% discount to customers who opt for a reimbursement rather than the cashless treatment option.