IRDAI has taken steps to stop sharp increases in health insurance premium

Current Context: The Insurance Regulatory and Development Authority of India (IRDAI) issued the directive to cap health insurance premium increases for senior citizens on January 30, 2025.

• Cap on Premium Hikes: Health insurance premiums for senior citizens cannot be increased by more than 10% annually.
• Approval for Higher Increases: Any increase beyond the 10% cap requires prior approval fom IRDAI.
• No Product Withdrawal: Insurers cannot withdraw individual health insurance plans specifically designed for senior citizens.
• Common Hospital Network: IRDAI urges insurers to adopt a common empanelment of hospitals to standardize hospitalization packages and reduce costs.
• Grievance Redressal: Insurers must set up dedicated grievance redressal systems specifically for senior citizens.

Question:

1 As per the IRDAI directive issued on January 30, 2025, what is the maximum annual increase allowed in health insurance premiums for senior citizens?

• A) 10%
• B) 5%
• C) 15%
• D) 20%

Answer: A) IRDAI has capped the annual increase in health insurance premiums for senior citizens at 10%, ensuring affordability and financial security for elderly policyholders.