'Discontinued my medical insurance after...': Columnist flags 14% inflation, says 'dark days ahead for commoners'

Journalist and columnist Seema Sengupta on Tuesday added her voice to the growing chorus of concern over skyrocketing health insurance premiums in India, revealing that she had to let go of her medical policy after three decades.

“Discontinued my medical insurance policy after 30 years due to unsustainable premium. Today, India has the highest medical inflation rate (14%) among all Asian countries. I tried to create awareness through my article, but wasn't allowed to publish. Dark days ahead for commoners,” Sengupta wrote.

Her comment comes amid rising discontent among policyholders, especially senior citizens, facing steep hikes in health insurance premiums. Earlier this year, 61-year-old Rajiv Matta had posted online, “I am 61 years old. In perfect health.....No claim till date. I pay premium for 2 years. Last one was in Jan '23. It's renewal time now. The premium has just gone up by 90%.” Tagging government officials and the Finance Ministry, he had asked, “Anyone from GOI to protect us?”

Matta's concern is not isolated. Surveys show that more than half of India’s insured population saw premium hikes of at least 25% in the past year. For senior citizens, the situation is often worse. A LocalCircles survey revealed that 21% of respondents experienced hikes of 50% or more, while only 15% reported no increase. The surge is widely attributed to high medical inflation—currently pegged at 14%—and the lingering impact of the COVID-19 pandemic on insurers’ claim ratios.

“Premiums rise due to factors like age and the insurer’s claim ratios. Unfortunately, these hikes disproportionately affect senior citizens,” said Shilpa Arora, COO of Insurance Samadhan.

However, the Insurance Regulatory and Development Authority of India (IRDAI) in January introduced a cap on premium hikes for senior citizens. As per the directive, insurance companies are barred from increasing premiums for senior policyholders by more than 10% in a single year without prior approval.

The IRDAI now requires any health or general insurer planning to raise premiums beyond that threshold to submit a formal request justifying the hike. Approval will only be granted if the justification is deemed valid and necessary.