Insurers Removing Sub-limits in Health Policies

Good news for health insurance policy holders! Insurance companies are coming up with new health plans by deleting sub-limits which were imposed on room rents, doctors’ fees and operation theatre charges. They were introduced to cut losses in health insurance segment, particularly for group policies.

Two companies Apollo Munich and Tata AIG General have scrapped sub-limits while other non-life insurers are following similar move. Tata AIG has introduced MediPrime and Apollo Munich introduced Optima Restore with no sub-limits on special ailments or charges.

An insurance industry executive said that, group policies will continue with such limits as these products cannot have unlimited benefits. In retail health insurance for every Rs.100, the industry pays claim of Rs.60-70 whereas for group policies, the insurance industry is paying more than Rs.110 against Rs.100 earned.

It is stated that retail health insurance segment contributes more than Rs.5,000 crore to the income of the industry while the size of the insurance industry is Rs.12,000 crore. The health insurance segment is growing at 25% to 30% on yearly basis. So, in order to attract policyholders insurance companies are also offering alternative treatments like Homeopathy, Ayurveda, Unani.