11CCalculation of age‑based discount

11C Calculation of age‑based discount

Note: This rule deals only with the calculation of the age‑based discount. The premium that is payable in respect of a particular insurance policy is also affected by other provisions of the Act (including Part 2‑3 of the Act, which deals with lifetime health cover) and rules made under the Act (including these Rules).

(1) For paragraph 11B (b), the total age‑based discount that applies under an age‑based discount policy for a particular period is equal to the sum of the applicable discounts to which each eligible person who is insured under the policy is entitled for that period. (2) An eligible person is entitled to an applicable discount calculated in accordance with the following formula: Start formula applicable discount equals start fraction base rate for hospital cover times applicable percentage over number of adults insured end fraction end formula where:

applicable percentage, for a particular period, is the greater of:

(a) the person’s percentage for the period, determined in accordance with the table to subrule (3); and
(b) zero.

base rate for hospital cover is the amount of premiums that would be payable for hospital cover under the policy if:

(a) the premiums were not increased under Part 2‑3 of the Act (lifetime health cover); and
(b) there were no discounts of the kind allowed under subsection 66‑5 (2) of the Act (including under this Part of these Rules).

number of adults insured is the number of adults insured under the policy.

(3) For paragraph (a) of the definition of applicable percentage in subrule (2), the table is:

(4) For subrule (3), a person’s base percentage is equal to: (a) for an eligible person under the policy—the percentage, as given by the following table, corresponding to the person’s age at the discount assessment date; and