A few years ago, health insurance in India was not popular. People looked at it as an unnecessary expense and a burden on the family budget. Slowly, people started realizing the importance of a health insurance cover, and they were open to buying health insurance policies to protect themselves from paying hefty hospitalization bills.
The government opened the insurance industry to foreign companies and set up a government body known as the IRDA (Insurance Regulatory and Development Authority). This government body oversees all insurance companies and formulates terms and conditions for these companies.
Market Potential
Many foreign companies set up shop in India with the help of Indian partners. The enormous Indian market was one of the main factors that drew these companies to offer health insurance in India. Companies selling health insurance in India also tied up with banks to provide the bank's customers, insurance products. This has benefited both – the bank as well as the insurance companies. The insurance companies' sales shot up considerably after they tied up with banks.
The Indian market was attractive for foreign companies since the population was growing at a brisk pace, and so was the Indian middle class who could afford to buy health cover.
Over the years, health insurance in India has grown by leaps and bounds. It is now the fastest growing insurance segments among other segments. With increasing awareness, the benefits of health insurance in India will grow exponentially in the coming years. A report in the Oxford Economics media estimates that the revenue from health insurance premiums will reach US$ 3.5 billion by 2021.[1]
Spoilt for Choices
All health insurance in India offers a base plan where they provide basic cover for hospitalization, which includes room charges (up to a specific limit) medications prescribed by the hospital doctors, tests, ambulance charges, and other incidentals as allowed in the policy document.
Customers who are suffering from pre-existing diseases like diabetes, heart and blood pressure problems, as well as other diseases, are not covered under the standard health policy. However, this can be covered by paying an additional premium and comes into effect only after a certain period. The period may vary from insurer to insurer. What it means is that you cannot make a claim for the pre-existing disease for a certain amount of time that is stated under the policy.
Insurance companies in India also offer a wide range of policies with add-ons (riders) to the policy for specific requirements. For example, one company is offering riders to the policy like the cost of the attendant, out of pocket expenses, and pre-existing diseases for an additional premium. A host of other options are also available and can be added to the policy. This is convenient for the insured as they can pick and choose what they really need.
Recently, the world is plagued by the deadly Corona Virus. Health Insurance in India covers this disease with a supplementary policy to policyholders. Also, a standalone policy is available to cover this disease. The maximum age of the insured should not be more than 65 years of age.
The Best Health Insurance Company in India
It is difficult to say which is the best health insurance company in India. Health insurance companies in India are gauged by different parameters. Some companies have very competitive premiums; others have a good network of cashless hospitals or, more importantly, how easy it is to make a claim and how soon the money is disbursed.
Conclusion
Health Insurance has come a long way since it started a couple of decades ago. Policyholders are now more aware of what they want and will not settle for less. Customers can also return the policy if it is not suitable, or it is not what they asked for. This return clause is mandatory in every policy.
[1] https://www.ey.com/Publication/vwLUAssets/EY-global-analysis-of-health-insurance-in-india/$File/ey-global-analysis-of-health-insurance-in-india.pdf