Facts About Health Insurance in India – Busting the Myths

By Powell Rider On May 23, 2024

Health insurance is probably the single most important form of general insurance as it safeguards your most important assets – your health and your financial well-being at the same time. Unfortunately in 2021, only 37 per cent of the population of India, approximately 51.5 crore people, were covered under health insurance schemes with a shocking 30 per cent of the population, around 40 crore people having no access to any form of health insurance. This is a result of a lot of damaging myths that abound in and keep people away from purchasing health insurance policies. We will look at a few such myths in our article.

Health Insurance Myths and Facts

Here are some of the common myths about health insurance:

Health Insurance is not required when you are young:This is one of the most damaging misconceptions about health insurance. A lot of people believe that as they are healthy, there is no requirement for them to purchase a health insurance policy. The general belief is that you can buy a health insurance policy layer. An extreme school of thought in this regard is that health insurance is only for senior citizens. Nothing could be further from the truth.Fact:

Health insurance is a product that you should purchase at as early an age as possible because at younger ages you are more likely to be free from ailments and certain critical diseases or conditions. The ease of issuance of a policy is more when you are young. The cost of health insurance, the premium, too is lesser when you buy at a younger age.

In the unlikely event of you suffering from certain pre-existing diseases at a younger age, you will be able to get yourself covered after completing the mandatory waiting period. India’s insurance regulator, IRDAI has recently decreased the maximum waiting period for such pre-existing diseases from 48 months to 36 months.

Indian insurance companies reject most claims:A lot of people feel that the process of filing claims is complicated and that most health insurance companies reject the majority of claims raised. This is not true. Indian health insurance companies have a very good Claim Settlement Ratio.Fact:
As long as you declare all material facts and submit the documentation, claim rejection is unlikely. You may raise claims through dedicated apps aided in every step by AI and machine learning, which will not let you jump steps to ensure that your claim does not get rejected.

Health Insurance is very expensive:
It is quite expensive if you do not compare or opt for a health insurance plan when you are old or with multiple pre-existing ailments.

Fact:
As long as you choose wisely from the different types of health insurance plans matching your needs purchase affordable health protection plans. However, a cheap policy is not necessarily the best policy. Buy comprehensive health insurance plans for families to get extensive coverage at affordable rates.

Policy benefits begin immediately:
Only accidents are covered immediately.

Fact:
Other benefits of health plans come with an initial waiting period. Even maternity expenses have a certain waiting period.

Pre-existing Diseases are not covered: unless specifically mentioned.Fact:
However, there are some plans which provide coverage for pre-existing diseases after a certain waiting period.
Smokers and regular drinkers cannot purchase mediclaim: Neither of these constitutes a pre-existing condition.Fact:
Thus, both smokers and regular drinkers can purchase health insurance plans provided you declare the same at the time of the policy inception.Note: Your premium may be higher if you indulge in these habits.

All costs are reimbursed: A policy may have sub-limits or co-payment clauses, and you may need to pay a certain amount of your bills.Fact:
Also, some expenses are non-admissible under health insurance meaning that they are not paid. Save money with health protection plans.

Online Health Insurance is risky:
Health insurance is considered risky when you do not declare all information

Fact:
Once you fill the form properly and honestly, declare all material information and also compare and choose the best plan, online plans can be the best choice as you can avail discounts as well!

Conclusion

Don’t get influenced by misinformation and make informed decisions when considering health insurance.

Facts About Health Insurance in India – Busting the Myths

Health Insurance Myths and Facts

Conclusion

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