While the regulator has not capped the charges as of now, industry sources say insurers are charging an additional 3-4 per cent on the premiums paid in instalments
Policyholders who opt to pay health premiums in instalments will end up paying more than what they would have paid if they opted for a one-time payment annually.
This is because insurers are levying a nodal charge of 3-4 per cent on premium paid through instalments.
So far, insurers collected a lump sum premium on health plans annually. Now, due to payment in instalments, insurers will take a hit in their investment income as they will lose out on sizeable amounts of money which could be deployed in the markets for investment returns. Moreover, they will have to bear expenses to manage the monthly instalments and keep records.
First Published: Jun 06 2020 | 10:55 PM IST