A Health insurance policy is a contract between the insurance company and the policyholder, wherein the insurer pays for the medical expenses incurred by the life insured. The insurer will either provide a reimbursement for your medical expenses or ensure you are eligible for cashless treatment for injuries or illnesses covered under the policy at one of the network hospitals. You can also get tax deductions on the premiums paid towards health insurance under Section 80D of the Income Tax Act, 1961.
Types of Health Insurance Plans in India:
- Individual Health Insurance: As the name suggests, Individual health plans are made for individual policyholders. The premiums might be low under such plans, but there are a variety of factors that contribute to the price of a policy. Previous medical conditions, age, location, etc. are a few of the parameters that influence the premium.
- Family Floater Health Insurance: Instead of buying separate policies for every member, a family floater plan covers the entire family under one plan. Typically, parents and children (up to 2 children) can be covered under this plan. Some insurers even provide coverage for up to 15 family members. Under such plans, the sum insured is shared by all the included family members. Even though family floater plans have a higher premium than individual plans, the price is still cheaper when compared to the expenses involved in buying a different policy for each member.
- Senior Citizen Health Insurance: Designed to cater to the needs of the senior citizens, such plans are only for the ones who are 60 years old and above. Senior citizen plans usually come with discounts. Though only a few insurers provide such policies, they might ask for a medical check-up before selling the plan. Also, these policies may cost a lot higher than the health covers for younger consumers as senior citizens are more prone to diseases and illnesses.
- Critical Illness Health Insurance: Critical illness plans cover life-threatening illnesses. Cancer, heart attack, organ transplant, kidney failure, etc., are a few of the illnesses covered under such policies. A critical illness cover is especially useful if the insured has a history of certain critical illnesses in the family.
- Maternity Health Insurance: Maternity plans are designed to cover women who are expecting a child. It covers the expenses incurred in the pre-natal stage, delivery, and post-natal stage. Both the mother and the newborn are covered under such plans. Maternity plans can also be bought as a rider to an existing basic policy.
- Group/Employee Health Insurance: Such plans are usually offered by employers and are designed to include and exclude members as they join and leave the company. Group health policies are generally low in premiums due to the reduced risks involved. Such plans also allow leniency in terms of covering pre-existing illnesses among other things.
- Preventive Healthcare: A preventive healthcare policy covers the expenses incurred during treatments/measures taken to prevent a certain disease, illness, or cancer. Annual check-ups and screening tests are few of the services that are covered under preventive healthcare.
- Personal Accident Insurance: Personal accident plans specifically cover the expenses related to unforeseen accidents. Such policies provide compensation in cases of disablement, death, injury, or impairment caused by road, rail, water, or air accidents.
The following are the documents you will require to purchase health insurance in India:
- Age proof: When purchasing a health insurance policy, you will be required to submit the age proof of all individuals who are going to be covered by the plan. The following documents are acceptable as proof of age:
- Birth certificate
- Passport
- 10th or 12th class marks card
- Voter’s ID
- PAN card
- Aadhaar card
- Driving license
- Proof of identity: The following documents can be submitted as ID proof when applying for a health insurance plan:
- Aadhaar card
- PAN card
- Voter’s ID
- Passport
- Driving license
- Proof of residence: A permanent address proof must also be submitted when applying for health insurance. The following documents can be used for this purpose:
- Telephone bill
- Passport
- Electricity bill
- Driving license
- Ration card
- Voter’s ID
- Aadhaar card
- Passport-sized photographs
Certain health insurance companies will require applicants to undergo medical examinations in order to qualify for coverage. Also, insurers can also request other documents apart from the ones mentioned above.
Best Health Insurance Companies in India in 2021
Listed below are some of the top insurance companies offering health insurance policies. The insurance companies have been ranked based on the Incurred Claims Ratio of every insurer. This is the ratio between the premium earned and the total claims incurred by the insurer.
This is the ratio that is generally used to determine how an insurance company is performing. A higher incurred claims ratio means the insurance company has a better track record of settling the claims they receive. It is always good to opt for an insurance company with a high Incurred Claims Ratio.
Health Insurance Companies | Incurred Claims Ratio (ICR) | Grievances Resolved |
---|
National Health Insurance | 115.55% | 97.07% |
Oriental Health Insurance | 113.86% | 73.83% |
United India Insurance | 110.95% | 96.59% |
Reliance General Insurance | 106.54% | 98.49% |
Universal Sompo General Insurance | 104.17% | 100.00% |
New India Assurance Health Insurance | 103.19% | 99.94% |
Bharti Axa General Insurance | 98.50% | 99.69% |
IFFCO Tokio General Insurance | 90.69% | 98.47% |
Aditya Birla Health Insurance | 89.05% | 57.54% |
Future Generali Health Insurance | 87.42% | 99.73% |
Bajaj Allianz General Insurance | 77.61% | 99.78% |
Liberty Videocon General Insurance | 74.58% | 100% |
ICICI Lombard General Insurance | 68.26% | 98.91% |
Star Health and Allied Insurance | 61.76% | 98.96% |
Source: IRDA Annual Report 2017-18