PMO Urged to Review Health Insurers’ Premium Hikes

An individual investor has alleged that several health insurers raised premiums despite the GST Council’s recent reduction in tax on insurance, and has urged the Prime Minister’s Office to review both insurer pricing practices and the Insurance Regulatory and Development Authority of India’s (IRDAI) oversight. In a letter cited by Business Today, the complainant claims consumers have not received a full pass-through of the GST relief and seeks a forensic audit of insurers’ pricing models, expense ratios and claim payouts. The representation also asks IRDAI to publish transparent benchmarks on medical loss ratios, distribution commissions and administrative costs, and to mandate clear disclosure of premium drivers at renewal. Industry sources said insurers routinely reprice policies based on claims experience and medical inflation, while consumer groups argued any tax relief should be visible in final invoices. The PMO and IRDAI had not issued statements at the time of publication.