The Insurance Regulatory and Development Authority of India (IRDAI) has allowed insurance companies to increase health insurance premiums for senior citizens by up to 10% annually.
However, the regulator has mandated that any increase beyond this limit will require prior approval from IRDAI. This decision, announced on January 30, 2025, has sparked concerns among the public.
In its circular, IRDAI clarified that the move aims to address recent incidents where insurers significantly raised premiums for individuals aged 60 and above.
The regulator has instructed general and health insurance providers offering individual health insurance products to adhere strictly to the 10% annual cap for senior citizens.
Concerns Over the Decision
IRDAI has stated that insurers must consult the regulator in advance if they propose raising premiums by more than 10% for senior citizens.
The regulator has also assured that it will closely monitor health insurance premium products to ensure compliance.
Despite these measures, many are questioning the rationale behind allowing even a 10% annual increase. Critics argue that most senior citizens lack regular income sources,
and with the Reserve Bank of India’s inflation tolerance band set between 2-6%, a 10% hike appears excessive. They question whether senior citizens’ incomes are growing at a similar rate to justify such increases.
This decision has drawn parallels with the Indian Railways’ move to withdraw fare discounts for senior citizens, further fueling the debate on affordability for older adults.
