Premiums rise with age bands and approved price revisions. What an insurer is not allowed to do is raise your renewal premium because you made a claim.
Why does your health insurance premium go up?
Health insurance premiums usually rise over time. Most increases come from two sources: you move into an older age band, or the insurer revises the price of the whole product. A claim on your own policy is not supposed to be one of them.
1. Age bands
Premiums are priced by age band, for example 36 to 40 and 41 to 45. When you cross into the next band at renewal, the premium steps up. On a family floater, the eldest member's age usually drives the price.
2. Product-wide revisions
Insurers can revise a product's premium rates for everyone, as per IRDAI regulations. Current wordings say so directly, for example: "The Company may revise or modify the terms of the policy including the premium rates as per applicable IRDAI regulations." Wordings also require the insurer to tell you before such a change applies. Medical inflation and the product's overall claims are the usual reasons.
What an insurer should not do
- Refuse renewal because you claimed. Current wordings state: "Renewal shall not be denied on the ground that the insured had made a claim or claims in the preceding policy years."
- Load your premium for your own claims. Many wordings say no loading is applied at renewal on the basis of individual claim experience.
A loading can be applied when you first buy, based on your declared health. Some wordings cap it (Narayana Arya at 50%) and say it continues on renewals.
Features that freeze the age
A few plans lock your entry age. Niva Bupa ReAssure 2.0 and ReAssure 3.0 have Lock the Clock: you pay the premium for the age you joined at until a claim is paid.
Other things that change the price
- Increasing your sum insured or adding add-ons.
- Removing a discount you had, such as a multi-year or wellness discount.
- Moving to a city in a higher premium zone, on plans priced by zone.
Read your renewal notice
Compare it line by line with last year's: age band, sum insured, add-ons, discounts and taxes. If the jump is not explained by one of these, ask the insurer in writing.
Frequently asked questions
Does my health insurance premium increase every year?
Not every year, but it rises when you move into a higher age band and when the insurer revises the product's rates as per IRDAI regulations.
Can my premium go up because I made a claim?
Renewal cannot be refused because you claimed, and many wordings say no loading is applied at renewal based on your own claims. Increases should come from age bands or product-wide revisions.
Can I stop my premium rising with age?
Some plans lock your entry age until a claim is paid, such as Niva Bupa ReAssure 2.0 and 3.0 (Lock the Clock). Most plans do not.