Bajaj Allianz as a company is best known in the health insurance industry for its focus on health insurance and quality servicing. It has set some good benchmarks for the industry including being the first company to introduce in-house claims processing for Health Insurance in India.

Very recently, in what seems to be a bid to cover the medical inflation (of around 12-15%) and sustained increasse in claims, Bajaj Allianz announced a revision in terms and conditions of their health insurance products - Bajaj Individual Health Guard and Bajaj Family Health Guard.

The changes made are as follows:

15-20% increase in premium.

Bajaj's Health insurance products have been around 10-20% more expensive than products from government companies (that are more restrictive on various conditions like room rent limits compared to products from private companies.) The new increase of 15-20% will make the products all the more expensive, unless other companies, especially Govt. Companies take cue.

Health Insurance being a yearly contract, Insurance companies can increase premiums at the time of renewals, subject to approvals from the Govt. Regulator - the IRDA.

Note, This premium change will also be applicable to existing customers on renewal.

Introduction of Loading:

Following the trend of Insurance companies introducing loading in their products, the revision envisages a premium loading clause against high claims as follows. A "premium loading" clause provides for jacking up premiums based on claims

Bajaj Allianz Family Health Guard:

"30% Loading applicable if 3 or more claims paid amounting to Rs. 50000 or more in previous 3 years. Loading will be applied at the policy level"

Bajaj Allianz Individual Health Guard:

" Loading will be applicable for policies where there are 3 claims (paid) or more in previous 3 years with total amount exceeding Rs. 50000/-. The applicable loading will be 50%. Loading will be applicable considering the expiring 3 policies (max 3 years) and will be applicable fresh on every renewal"

This simply means that if Mr. Shah who has covered his family of 4 with Bajaj Allianz Family Health Guard, has 3 claims in the past 3 years for any of their members, where the total of all claims is more than Rs. 50000/-, the premium on renewal of the health insurance policy would increase by 30% from Rs. 8000/- to Rs. 10400/-.