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Mumbai: Cancellation of mediclaim covers has increased by 30% following internal audits, which have forced insurance companies to ask for higher premium after issuing policies.
As per the industry estimates, cancellation of group mediclaim policy midway has gone up by 30 per cent. Insurers, mostly private ones, are going for cancellation of mediclaim, marine and cargo cover at a later stage due to adverse claims ratio. They have not been pricing the product correctly in order to grab market share.
Boda Insurance Broker Executive Director K Ramachandran said, “Private insurers are cancelling group health policies with a 30-day notice. The trend has been continuing post-detariffication, but has gained momentum this year with the increase in internal audits of these companies.”
According to the sources, ICICI Lombard has asked L&T to pay additional premium for the group mediclaim policy in the middle of the year. When contacted, L&T said that ICICI Lombard has urged for extra premium but has not sent any notice.
An ICICI Lombard spokesperson said that they have a vigilant investigating team which ensured that genuine claims were paid.
Shreeraj Deshpande, head (health insurance), Bajaj Allianz General Insurance said, “Cancellation of health policy midway is an inappropriate step and it only goes to show that the insurer has not priced the risk appropriately unless the decision to cancel is taken because of fraudulent or wrong declarations at the time of pricing.”
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