New India intends to raise health insurance rates every year.

After seeing a 50% increase in the last five trading sessions, New India Assurance has decided to review health insurance rates annually instead of every three years as it has previously done.

On the Bombay Stock Exchange, shares of New India Assurance increased 10% during the session to Rs 255.85, while the index increased 0.13%.

The firm, which was originally scheduled to make modifications in 2020 after a three-year lapse, postponed its decision because of the pandemic after a 25–30% hike in retail health insurance prices in June—the first in six years. The managing director and chairman of New India Assurance, Neerja Kapur, informed analysts

But rather than making a large adjustment once every three years, the insurer wants to lessen the impact on policyholders by introducing smaller, annual adjustments.

According to Kapur, the rise in medical inflation and the frequency of health claims is the cause of the premium increase. She said that the increased incidence of health claims is a result of Covid problems. Additionally, during the Covid pandemic, hospital surgical costs increased and stayed at high levels.