After the Department of Financial Services’ (DFS) intervention, Insurance Regulatory and Development Authority of India (IRDAI) is preparing to send a show cause notice against insurance companies.
DFS had discussed IRDAI’s intervention in the matter of health insurance companies increasing health premiums too much, Zee Business reported.
According to IRDAI, seven companies violated the master circular of health insurance. Many companies did not provide correct information to the users, unnecessarily stopped the claim, and in many cases, delayed the payment of the claim.
Irregularities found in ICICI Lombard General Insurance, HDFC ERGO General Insurance, Tata AIG General Insurance, Star Health and Allied Insurance, Niva Bupa Health Insurance, Care Health Insurance companies, IRDAI said.
Soon, IRDAI will issue a show cause notice to the companies and ask for answers as to why action should not be taken against them.
Zee Business was the first to report that DFS is alert about the rising premiums of health insurance.
In February, the IRDAI has asked insurance companies not to increase health insurance premiums for senior citizens by more than 10 per cent per annum. This strategy is intended to safeguard seniors from significant premium hikes while assuring ongoing coverage.
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