Antivirus Update:
Are you paying a higher premium while renewing?
I am referring here health insurance or in common parlance 'mediclaim'. I think that many of us, who have taken such mediclaim policies, are not aware of the 'loading' factor. What it is?
Suppose you took the policy few years back and since then you have been paying the premium regularly and renewing it also. Now renewal can happen at year end or at the end of two-year period, if you have taken a two year policy. Whereas it may happen that in few years you did not make a single claim or in few years you made claims but not of significant amount. It may also happen that in last year you made claims that went up to use a large share of your total claim limit, say 3 lakhs, 5 lakhs or whatever. Chances are that when you will be renewing your policy this time, you will be charged more. Say, you used to pay a premium of Rs. 15,000 / year. So post renewal your new premium could be Rs. 22,500 / year i.e. 50% more. This increase in premium is called 'loading'.
If you are with your policy for quite a few years, then naturally you will not dump it now (actually that would be very stupid) just for this reason that they have added a loading factor to your premium. At the same time you are not finding it fare and just because you were not informed about it while buying the policy.
But the good new is that few insurance companies now dared to tread a different path. Thanks to increased competition and health insurance portability (which ensures that you can change your insurer with all benefits and bonuses keeping intact) these companies have decided not to charge loading from their customers. As of now these companies are Apollo Munich, Max Bupa, Reliance General Insurance. Hope other health insurance companies will soon join them.
I am not recommending you to switch your health insurance from the current company to one of the companies mentioned above. But the point is get informed. Get aware of the fact that what loading policy your company is following, if any. Ask your agent or give a call to the company to find out. If you want to ask us – it's simple – post your comment.
