The Policy Bazaar show is a brand- new series that decodes the grey areas of purchasing insurance. Through the 26-episode series, the show will highlight and discuss a magnitude of topics essential to everyone trying to secure their future. From purchasing the right cover, to switching policies while shifting jobs, to ensuring a comprehensive child cover, insurance experts deliberate, simplify and shine light on the complexities of purchasing insurance in India. In this week’s episode, our eminent anchor Vivek Law will be talking about the evolution of the insurance sector with Ritesh Kumar, CEO, HDFC Ergo, one of the leading insurance companies of the country.
General insurance or non-life insurance policies, including automobile and homeowners' policies, provide payments depending on the loss from a financial event. Health insurance becomes one of the most important insurance as it covers all or most of the healthcare costs of the person insured. The cost of healthcare insurance is dependent on the healthcare costs. In the last few years, the health care sector has been through major inflation. The inflation in health care in global terms, is much higher than normal inflation. The reason behind health inflation is mostly the development in treatment procedures and the increase in lifestyle diseases. The rise in costs have however, helped in better penetration of health insurance among citizens. There is much higher demand of insurance today compared to what it had been 2 decades ago.
The health insurance sector has been through a commendable upgrade over the years with the implementation of digitization and analytics. While analytics help in tracking the consumer buying behavior and providing customized health care coverage to the consumers, digitization has been helping in improving the consumer experience tremendously with a faster claim settlement process and tele-underwriting. Tele-underwriting is the process of underwriting decision based on a telephonic interview to gather risk related information directly from the applicant.
It is necessary for the citizens to realize that any insurance cover is necessary because it provides a financial protection. Indians often are seen to have inadequate insurance. With the healthcare costs prevailing today, a minimum cover should be of 5 lakhs, while only covers ranging from 25 lakhs can be considered adequate. Hence, it becomes important for the individuals to start with a 5-lakh cover at an early age and continue topping the cover every two years to ensure a proper coverage. There are better covers available in the market today that provide more covers for day care procedure. It also has more coverage for benefit based critical illness and vector borne diseases.
Insurance Tip: While buying covers, ensure that it has good coverage and priority for low frequency, high severity incidents and covers OPD based high frequency, low severity issues.
Watch for more advice about the right health insurance policy