Public sector non-life insurers discriminate against senior citizens

13 March 2006

Public sector insurance companies have started raising insurance premium and altering terms on policy renewals for senior citizens, while pandering to their corporate clients. By V.Jagannathan.

Chennai: Sixty-five year old Lakshmi was shocked to receive the mediclaim renewal notice from one of the public sector non-life insurers; the insurance company had, without any prior intimation, hiked her renewal premium by a whopping 100 per cent, because of her age! Health insurance premium is based on the age of the person and the value of the cover the policy holder chooses.

Ironically, the insurer gave her a cumulative bonus (coverage increase without additional cost) for not making a claim during the previous year. Although Lakshmi has had the policy for the past several years, she has never made a single claim till date.

When she inquired about the arbitrary hike, the insurer's attitude literally was "take it or leave it". Upset by the arrogant attitude, she approached other insurers who, too, turned down her application on grounds of her age and the "premium loading" mentioned in the renewal notice.

Finally, Lakshmi had no option but to pay the quantum increase in her premium to her existing insurer.