Mr. G. Srinivasan, Chairman – New India Assurance Company Ltd., announced the 20% hike in health insurance premium effective June 2013. This announcement was made after insurance regulator Insurance Regulatory and Development Authority (IRDA) approved the hike in premium amount for policies issued by the Company.
New India Assurance Company, a leading insurance company with branches across India and overseas with a network of 1068 offices, 28 Regional offices, 393 Divisional offices and 648 branches posted a net profit of Rs. 843.66 crores i.e 500% jump in profit as compared to previous year and highest in 5 years. Net worth of the company also grew by Rs. 680.36 to the total of Rs. 7,737.36 and also reduced its losses by Rs. 400 crores.
This hike rate by New India Assurance Company will serve as a benchmark for other general insurance companies who may soon follow the suit.
Mr. Srinivasan also added that though average 20% increase in price is announced, actual rate climb will differ from division to division. Also, in case of renewal premium, rate increase will not be applicable immediately as the customers need to be served with three months notice period.
According to him, for a person aged 35 years and residing in Mumbai insurance premium amount will go up to Rs. 7,300 as against the existing of Rs. 6,078. Adding to the above, he clarified that premium amount will be different for person residing in different locations / cities depending upon the cost of treatment.
He also revealed the plan to reduce operational cost, which at present is 120% by forming their own Third Party Administrator (TPA) to handle the health insurance business and association of hospitals.
