New India offers health cover discount

MUMBAI: Customers of New India Assurance's mediclaim policy may soon get some relief from rising premiums. The public sector general insurance player is planning a loyalty discount for customers who are over 50 years of age and intend to renew their policies, sources said.
The catch, however, is that the policy should have a cumulative bonus and no claims ought to be have been made in the year preceding the renewal.Not just that, discounts are likely to be different for people living in different 'zones' as identified by the insurer.
For instance, customers in Mumbai (under Zone 1), who pay the highest premiums, are likely to benefit the most with a 10% loyalty discount on the premium. A source added that Mumbaikars have to bear the highest cost of health care and insurance rates compared to any other city in the country. Therefore, the discount for the city is at the highest slab.
People living in Delhi and Bangalore (Zone 2) are likely to get a 7.5% discount. As for those living in the rest of India (Zone 3), they could benefit by 5%. The argument here is that healthcare costs in these regions are lower, and therefore, a smaller discount.
New India had introduced a zone-wise distribution of premium rates last year when it modified its policy. So, a person in the age bracket of 55-60 years pays Rs 11,230 for a Rs 3 lakh mediclaim cover if he stays in Mumbai. If he resides in Delhi or Bangalore, he pays Rs 10,210 for the same size cover and Rs 9,200 if he resides in any other part of the country.
In the light of the discount (assuming that the rates are not loaded with additional premiums in the following year), the Mumbaikar is likely to get Rs 1,123 off, taking his premium to Rs 10,107 for the next year. However, this is only if he hasn't made any claims in the previous year.
This, however, say industry experts is a small measure given the fact that premium rates have been going up. Over the last year, public sector general insurance companies have hiked rates on renewal of policies by 100%-200%. This, despite the fact, that the insurance regulator, in a recent circular, has asked public sector general insurance companies not to increase rates beyond 50%-75% of the rates charged prior to the revisions made in April 2007.
However, public sector general insurance companies claim that they have not received any such notification from the insurance regulator so far.