VHI Healthcare has announced that it will increase the prices of private health insurance plans by an average of 3% - with the cost of a range of products set to increase from November 1st of this year.

Declan Moran, Director of Marketing and Business Development says that, "The main reason for the price increase is the rising cost of claims and in particular the rising cost of claims in public hospitals."

"We are very aware of the financial pressures that continue to face our customers and have sought to keep the price increase as low as possible without compromising cover," he continued.

Mr Moran added that the company will is constantly reviewing its offerings and that it will introduce "innovative new benefits" for customers.

VHI has also announced that children will now be offered half price fees on its "One Plan Family" product for families renewing their policies between November 1st and December 30th of this year.

The company said that it hopes that this measure will "take some of the pressure off families."