Why Is Your Renewal Premium Suddenly 40% Higher?

Premium increases at renewal are common — but not all increases are legitimate.

Legitimate Increases

What Insurers Are Allowed to Do

Insurers can increase premiums at renewal for: age-based increases as you move into a higher age bracket, portfolio-wide rate revisions approved by IRDAI, and risk loading for specific health conditions — but only at initial underwriting, not at renewal based on claims history.

Key rule: Insurers cannot load your premium at renewal based on individual claims experience. If you made a claim last year, your premium cannot be increased specifically because of that claim.

Illegitimate Increases

What You Can Challenge

Any premium increase not explained by age-band movement or an IRDAI-approved portfolio revision is potentially challengeable. Insurers sometimes impose loading at renewal citing health conditions — which is not permitted for renewals of existing policies.

How to challenge: Write to your insurer requesting a written explanation with the specific regulatory basis. If they cite individual claims experience, escalate to IRDAI's Bima Bharosa portal.

When to Port

Using Renewal Time to Switch Insurers

If your premium has become unaffordable or service quality is poor, renewal time is your window to port. You carry your waiting period credits with you — you do not lose the continuity you have built.

Timing: Initiate porting at least 45 days before your current policy expires. The new insurer must accept or reject before your current policy lapses.

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