IRDA to check if insurance firms treat policyholders uniformly

Following complaints regarding the subsidisation of premium for group insurance policies, the Insurance Regulatory and Development Authority of India (IRDA) has initiated a study on this issue.

The insurance watchdog 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 mediapersons 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.

IRDA believes that as trustees of the premium jointly collected from a number of individuals with the mandate to settle claims when they arise, insurance companies have the responsibility to ensure equitable treatment of all customers.

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.

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