An increase in the claims ratio will push up the group mediclaim premium of retired staff members of public sector banks by as much as 40%.
The Indian Banks Association has told its members that it has received the revised quotes, a TOI report said.
The high incurred claim ratio of 147.2% for retirees without domiciliary policy, and 163.3% for retirees with domiciliary policy have resulted in the increase in premiums, the report quoted IBA as saying.
Insurers have said that the second wave of Covid, which caused havoc in many states in April-May, caused a higher payout, resulting in an increase in the cost of group insurance policies.
Domiciliary cover, which is an extension of the insurance policy to cover treatment from home, charges a higher premium. However, the increase in premium for those with domiciliary cover itself is comparatively lower.
For a retired bank employee with a Rs 4 lakh insurance cover; premium has gone up by 34 percent without domiciliary cover, and 7.5 percent with domiciliary cover.
For retired workmen, with an insurance of Rs 3 lakh, the premium has increased by 40 percent without domiciliary cover, and by just 8.4 percent with domiciliary cover.
The National Insurance Company has offered a lower premium cover for those with a lower sum of insurance. They have also offered lower premium policies for retirees who are survived by a spouse, or for those retirees who have lost a spouse.
Source: Economic Times