Loading in Health insurance: Know about it!

if he claims 3 or more timesin two consecutive years. Amount loaded on the premium depends on the percentage of the Sum Insured that was claimed. Here is their table which explains the calculation.

Upto 25% of Sum Insured – 25% loading on applicable premium
26 to 50% of Sum Insured – 50% loading on applicable premium
51 to 75% of Sum Insured – 75% loading on applicable premium
Above 75% ` – 100% loading on applicable premium

Even in United’s Family Medicare policy, loading will be removed after three continuous claim-free years. The ‘No Claim Discount’ will be applicable only after completion of four claim-free years.

3) Loading depending on the claim ratio

Some policies calculate their premiums according to the ratio of claims to the premium paid. That is if you claimed Rs.20, 000 when you had paid a premium of Rs.10, 000, the claim ratio for the policy is 200%, and hence here the premium would be loaded as per a table according to this claim ratio.

In Star health’s Family health optima plan, this type of loading is applied. It is also mentioned that the loading ratio would not exceed 100% of the premium amount.

Claims ratio between 100-125%- 30% loading on premium
Claims ratio between 126-150%- 50% loading on premium
Claims ratio >150%up-to200%- 80% loading on basic premium

Mahavir Chopra, Head, e-business of Medimanage Insurance Broking Pvt. Ltd., says “Ideally, it (loading) isn’t supposed to be