Soon, you may be able to pay your health insurance premium in instalments. At present, customers have no option to pay the premium for these products in parts. With rising cover, especially for health, which can now go upto even Rs 1 crore, the premium has increased substantially. The move is expected to increase penetration of insurance in the country while giving a breather to customers, who can then pay the premium at their convenience.
The Insurance Regulatory and Development Authority of India (IRDAI) is looking into the issue. Currently, only life insurance premium can be paid in parts. The facility is likely to be extended to customers paying premium for their car insurance, as well.
“We have just got an approval from the IRDAI to do so..customers can pay their premium in installments..and they can choose the payment schedule,” Shreeraj Deshpande, head of health insurance, Future Generali India Insurance told Hindustan Times.
Penetration of health insurance in India is about 5%. In the urban areas, it is about 13-14%.
“We are looking at various option to augment the health insurance portfolio..though we do not have the option of allowing customers to pay their premium in parts,” said M Ravichandran, President, Insurance at Tata AIG General Insurance.
The government has underlined the need to expand the reach of insurance – both in life and non life segments.
Finance minister Arun Jaitley, in his budget speech last year, raised the tax deduction limit under Section 80D from Rs 15,000 to Rs 25,000. For senior citizens, it is Rs 30,000 from Rs 20,000. The move was aimed at encouraging more people to buy health insurance products.