Insurers from the public sector have already embarked on plans to increase the premium to be paid for the medical insurance soon. Oriental Insurance has already mention that a raise in the annual costs would mobilize the six year paralysis in the prices which would increase the total annual costs by 15% at least which would allow them to cope with the increasing costs of services.

With this announcement it is obvious that other government companies providing health insurance under the brand name of Mediclaim would also follow the same steps. This decision would be backed by the government too since they were asked to make sure that the businesses were profitable to. The four companies — New India Assurance, National and United India apart from Oriental Insurance — have 60% market share. New India had launched a new policy a few years ago.

"There has been no revision (in premium) for five-six years and we will soon file the new products (with the rates) with the regulator," A K Saxena, Oriental Insurance chairman and managing director mentioned at a press conference whilst announcing the progress of the company. Individual insurances may have a 15% higher premium annually while the premiums for group insurance could have a higher percentage.

"Medical costs have just shot up, we need to adjust to the new reality since we are losing money," company executive said indicating that the prices which were fixed five years ago, based on the expenses at that time, are now outmoded and required a revision.

According to sources, for every Rs 100 of premium paid, more than Rs 100 was gained in return when claimed. Senior citizens at times were paid as high as Rs 150 while the younger population had received up to Rs 125. The government wants to restrict these figures to Rs 95 at most.

It has been speculated that people below the age of 55-60 years of age can expect a higher premium than the rest.

(AW- Anil)