India medical insurance premiums under check

IRDA (The Insurance Regulatory and Development Authority, India), has directed insurers that the premium in any year should not be more than 75% than what was paid last year. Following deregulation of general insurance tariffs, medical insurance premiums were in some cases revised by 200% +. This led to many people discontinuing medical insurance and lodging complaints with the regulator.

While the price increase cap is good for consumers (compared to a 200% + increase !), it would be be detrimental to insurers who have been facing significant claims, especially in medical insurance.