Refund my excess premium; 1500 % profiteering by health insurers

The Government has just negotiated family health cover for Rs 5 lacs @ Rs 1250 per family from public sector insurers. Obviously it means the service provided by the insurer costs less than Rs 1250 since they have to keep some margin for their expenses and effort. The same service when is however provided to general public it is offered at approximately 20000 per family (Range 17000-27000) which is about 1500 % profit if 1250 is taken as the cost price.

Since we are moving towards social justice in healthcare it bothers me that Insurance companies are being allowed to make 1500 % profit on health insurance policies. This profiteering by public sector service providers can only be termed as outright fleecing of the gullible Indian public. Unfortunately the Government has turned a blind eye towards this officially sanctioned loot by both the public sector as well as the private insurers. Despite IRDA and other Government agencies meant to regulate the insurance industry, this has been going on for past many decades under their very noses which suggests corruption at the highest level. No one it seems bothered to check what is the value of the service being provided till the Government wanted insurance cover for 10 crore families and put a value for it which the insurers seem to have agreed to.

I agree with the Government, the high decibel TV anchors and the social society that no one should be permitted more than 35 % profit margin in healthcare. Given the 1500 % profits which have been raked in by the insurers over the years I demand a full refund of the excess amounts which have been charged from me over the past 23 years with interest.

Dr Neeraj Nagpal 
Convenor,Medicos Legal Action Group, Managing Director MLAG Indemnity,
Ex President IMA Chandigarh
Director Hope Gastrointestinal Diagnostic Clinic,
1184, Sector 21 B Chandigarh 
09316517176 , 9814013735
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