Insurance Regulatory and Development Authority of India has initiated a study regarding the subsidization of premium for group insurance policies.
The insurance regulator said a number of complaints have been received by it on the unfair discounts given to group policies, and it wants insurance companies to do away with this practice.
“We have asked the General Insurance Council, the apex body of non-life insurance companies, to provide us with the data on this to understand whether insurance companies treat all their policyholders equitably,” said TS Vijayan, Chairman, IRDA.
Speaking to reporters on the sidelines of the launch of a new policy for diabetes health insurance by Star Health and Allied Insurance Company, Vijayan said people in group insurance pay a far lower premium at the cost of individuals who would end up paying more. “IRDA will study all aspects of the issue and will come out with its findings,” he said.
Besides, it initiated a study on the cost of treatment at different hospitals, and adoption of unfair methods by some to make health insurance claims.
The registry for the study, which is expected to be ready in the next couple of months, will have around 25,000 to 30,000 hospitals.
