Insurance companies to refund excess premium under NHPM

Insurance companies will have to mandatorily refund excess premium if the claim ratio turns out to be less than 85 per cent under the Centre's ambitious 'National Health Protection Mission' (NHPM), says a proposal by the health ministry.

The programme will provide a coverage of Rs 5 lakh to 10 crore poorest families of the country.

The proposal was discussed by the health ministry during consultations with representatives from leading general and stand alone health insurance companies, and private hospitals, yesterday.

Indu Bhushan, who took over as the chief executive officer of the ambitious Ayushman Bharat National Health Protection Mission (AB-NHPM) on May 1, while chairing the meeting, has sought the feedback of the insurance companies on the matter.

"We have proposed that the insurance companies will have to mandatorily refund the excess premium if the claim ratio turns out to be less than 85 per cent under this project. This will ensure that insurance agencies do not have windfall gain from the ambitious scheme which aims at supporting the poorest 40 per cent of the population for expenditure on health treatment," Bhushan told PTI.

For example, if the premium paid by the government is