After heavy losses reported by general insurers due to poor pricing and rising claims from the Rashtriya Swasthya Bima Yojana (RSBY), the government has formed a committee to look into the issue of pricing so as to make the plan attractive for insurers, say industry sources.
"A committee has been formed comprising major general insurers to look into the issue of pricing of the premium for the RSBY scheme as many companies have reported losses in recent past due to inadequate pricing," industry sources said.
The RSBY is a universal health scheme by the government to cater to the BPL people. This scheme, which comes under Union Labour Ministry, provides health cover worth Rs 30,000 to BPL families.
The selection of health insurance provider is done by the implementing agency through tendering process.
"Sometimes, bidding process comes to irrational price levels which end up in losses for insurers. The committee will look into all this matter," the sources said.
Meanwhile, general insurers have also approached the regulator Irda to take up the issue of overcharging by medicals in case of patients with medi-claim policy.
"We have approached Irda regarding overcharging of medicals to patients with health insurance policy," an official of a private general insurer said.