By skewing their rates in favour of high-value plans, insurers upsell health insurance to clients. A Rs 1 crore health insurance plan for a 30-year-old is eligible for as low as Rs 18,000. As a result, the sale of high-value plans is now the source of a third of all health insurance premiums.
The experience of high claims from the Rs 1-25 lakh segment has been high. So premium rates shot up there by 50-100 per cent. And since the Rs 25 lakh -1 crore segment is fairly new, premium rates are low, an indirect cross-subsidy gain, said Biresh Giri, Acko Insurance, named actuary and CRO.
Insurers say the Rs 1 crore insurance concept first began with the life insurance industry, and the health insurance industry is a recent pandemic-induced trend. A family of three, a couple and a boy, will have to pay Rs 25,000-35,000 for a Rs 25 lakh-1 crore insured total, and a person may be able to pay as low as Rs 18,000 annually. A reality is captured by ads by insurers: “When you pay Rs 500-700 for your mobile bill, why not shell out the same for a health policy?”
In certain age groups, the premiums for high-sum insured plans are just 10-15% higher than the Rs 1-25 lakh bracket, making them affordable and attractive. Increasing demand has led to more such goods being launched and new sales or migration to those policies.