The Chamber of Trade and Industry (CTI) has written to Finance Minister Nirmala Sitharaman, demanding stricter regulations on insurance companies due to the increasing premiums of health insurance.
CTI Chairman Brijesh Goyal stated that the premium hike, ranging from 15% to 20% in recent years, is proving to be a significant burden on the middle class and small traders.
CTI Chairman Brijesh Goyal Said, “The premium on health insurance is becoming very expensive.”
The Insurance Regulatory and Development Authority of India (IRDAI) was formed by the Finance Ministry to monitor the policies and premiums of insurance companies, but its work has not been satisfactory.
The premiums of health insurance have increased by 15-20 percent in the last few years.
Insurance coverage, which was 4.2 percent in 2021-22, came down to 4 percent in 2022-23. Life insurance coverage was also reduced from 3.2% to 3%.
Many people have discontinued their policies due to continuous premium hikes.
The continuous premium hikes are severely impacting the middle class and small traders, straining their household budgets and leaving many struggling to cope, Goyal added.
The Chamber of Trade and Industry (CTI) has demanded immediate action, requesting that a notice be issued to insurance companies and that they be held to stricter standards.
CTI also advocates for establishing a clear guideline for health insurance premiums, as the current arbitrary increases by each company are causing significant distress to the common man.
The Chamber of Trade and Industry (CTI) believes that the Insurance Regulatory and Development Authority of India (IRDAI) has fallen short in effectively overseeing insurance companies’ policies and premiums.
This lack of oversight has resulted in a lack of transparency and accountability.
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