Loading in Health insurance: Know about it!

Other things being equal, companies which do not have loading as part of the company policy are the best.
Other than that select a policy from a company where the loading remains constant irrespective of the amount and which goes away after some claim free period of time like oriental’s happy family floater.
It is risky to buy a policy where loading is calculated from the claims ratio as it is going to be heavy on your pocket after a claim since even a minor hospitalization will result in a very high claims ratio.

IRDA’s Stand:

Insurance Regulatory Development Authority (IRDA) has not passed any directive on Loading per se but on receiving several complaints from senior citizens has issued this following advice:

The loading of premiums if justified for renewals of mediclaim Policies issued to senior citizens shall not exceed 50-75% of the premiums charged prior to the loading.
Senior citizens shall not be compelled by the insurance companies to migrate to other health insurance products of the same company, if it is to the disadvantage of senior citizens.

Is loading justified?

Sudhir Sarnobat, Director, Medimanage Insurance Broking Pvt. Ltd, says “The loading on individual client is absolutely unfair when they have claims in expiring policy year as it principally defeats the purpose of insurance that is risk transfer.  Loading is a concept which is acceptable for Group Risks where the policy conditions are