How Does Health Insurance Work In India?

by sidharth kapoor Financial Advisor

Statistical representation shows that more than 200 million people in India have availed health insurance policies in the financial year of 2014. This number increased and reached to approximately 288 million by the end of the fiscal year of 2015. Every year, the number kept increasing and was accounted to be more than 400 million in 2018.

Thus, health insurance policies are becoming widely availed by Indians thanks to awareness and benefits offered by companies.

However, before choosing among the different types of insurance policies, you must gather all the required details.

Significance of health insurance policy

You must get yourself covered under a health insurance to avoid financial burdens in case there is a medical emergency. If any of your family members gets hospitalised, it is already a stressful situation, and it gets worse with a financial burden. Thus, it is always better to be prepared for such unpredictable circumstances.

Expenses on medical treatments can dent your savings or even end up as a massive debt for your family. Thus, health insurance plans play a significant role in such instances.

Different health insurance policies available in India

The competitive insurance sector launched various products to offer services and benefits for families, individuals, senior citizens, etc. To avail the best health insurance policy in India, you must be aware how such plans work.

Cashless facility: In this case, all the medical bills are paid by the insurer right away.
Reimbursement facility: This follows another strategy. The individual needs to pay all the medical expenses and the insurer would later reimburse the amount once you provide with all the documents and bills.

Types of health insurance plans available

For individuals, plans are available within the range of Rs. 5,000 to Rs. 50 lakh or even more depending on the requirements. On average, companies usually offer coverage plans from Rs. 1 lakh to Rs. 5 lakh. Most of them provide a year's duration, but under specific circumstances, the period can be extended.

However, many individuals also look for plans that can cover their entire family. For such purposes, a Group Jeevan Suraksha plan from Bajaj Finserv is an ideal product to avail. The policy allows you to insure your family members at a nominal cost offering a coverage of Rs. 2 lakh.

What do health policies generally cover?

Such health insurance plans usually cover expenses charged before and after being hospitalised. Additionally, specific policies also provide with other benefits, including maternity as well as new-born coverage, hospitalisation care, day-care procedures, etc.

In case of a critical illness, some plans provide with a fixed amount for diagnosis or an undergoing procedure.

With such plans, you can be financially secured, all your medical expenses would be covered, and you would also earn compensations for children education, disabilities, etc. Additionally, you can also enjoy the claim-free bonus, quick disbursals and also receive family discounts under certain conditions. So, keep an eye on the specific details.

Factors that affect the premium

Age is a significant factor when it comes to the premium of a policy. The older an individual is, the more is the person prone to illness. Thus, the premiums can also become expensive.

Additionally, medical history plays a significant role in determining the premium as well. In case the medical history is clear, the premium will be reduced automatically.
Once you follow all the aspects mentioned above and ensure that the plans meet your requirements, it can be presumed that you would end up choosing one of the best health insurance providers available in India. However, it won’t be beneficial unless you select the right provider. Thus, research on that as well.