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A Health insurance policy is a contract between the insurance company and the policyholder, wherein the insurer pays for the 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.

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Best Health Insurance Companies in India in 2022

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)
IFFCO Tokio General Insurance 99.49%
Bajaj Allianz General Insurance 77.31%
Care Health Insurance 55.15%
Navi General Insurance 26.78%
Bharti AXA General Insurance 65.37%
Acko General Insurance 84.64%
Cholamandalam MS General Insurance 77.35%
Edelweiss General Insurance 111.57%
Kotak Mahindra General Insurance 55.17%
Royal Sundaram General Insurance 67.88%

Health Insurance Companies in India

Insurance Provider Claim Settlement Ratio Key Features
IFFCO Tokio General Insurance 99.71%
  • Cashless treatment at 6400+ hospitals
  • 24/7 claim assistance
Bajaj Allianz General Insurance 98.48%
  • Fast claim settlement process
  • Affordable premiums
Care Health Insurance 96.2%
  • Discounts on premiums
  • 16500+ network hospitals worldwide
Navi General Insurance 97%
  • Cashless claim settlement within 20 minutes
  • 10,000+ network hospitals across the country
Bharti AXA General Insurance 99.05%
  • Avail of tax benefits
  • Waiver of premium after first claim

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Documents Required for Purchasing Health Insurance in India

The following are the documents you will require to purchase health insurance in India:

Age proof:

  • 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.

Top Health Insurance Schemes Offered by the Indian Government

The following are some of the best health insurance policies offered by the Government of India:

  1. Rashtriya Swasthiya Bima Yojana
  2. Central Government Health Scheme
  3. Universal Health Insurance Scheme
  4. Employment State Insurance Scheme
  5. Ayushman Bharat Yojana

Eligibility Criteria for Health Insurance in India

The common eligibility criteria for Health Insurance in India are as follows:

Minimum Entry Age: The minimum age to avail of the benefits of health insurance for your child under a child plan is usually 16 days to 18 years. The entry age of a policy for adults ranges from 18 up to 65 years. It can also be 70 years and above based on the plan and insurer.

Pre-Existing Medical Conditions: If you are purchasing health insurance after the age of 45, you may have to go through various medical tests before getting health coverage. If the policyholder is not asked for the medical tests, then he/she has to submit a declaration disclosing his/her pre-existing conditions. These preconditions or revelations by medical tests determine whether a policy is accessible to a policyholder.

How to calculate Health Insurance premium?

In order to keep the policy in force, regular payment of a fixed premium is essential. Did you ever think about how this premium is calculated? There are certain factors that affect health insurance premiums such as the medical background of your family, sum insured, cumulative bonus, your personal medical history and so on.

Based on that, you might want to calculate your premium to figure out how much you would have to pay for the policy. It can be done through a health insurance premium calculator. A premium calculator is an online tool that calculates the premium to be paid as per the information provided by you, such as the preferred sum insured, age of the insured, etc. At Policybazaar.com, you can calculate your health insurance premium online easily.

Factors affecting your Health Insurance Premium

Based on a combination of various factors, your health insurance premium is defined by the following:

Age - While health conditions are on a rise for both people young and old, younger people are still a lot healthier due to stronger immune systems. Additionally, the younger you are, the more time you have to complete your waiting period for specific illnesses and covers. Therefore, the younger you are, the lesser is your premium!

Lifestyle - More than 61% of deaths in India are due to issues stemming from lifestyle diseases, including pollution levels! Therefore, your lifestyle habits such as if you’re a smoker or not will have an influence on your health insurance premium.

Pre-existing diseases or conditions - If you’ve already been facing symptoms of some kind, or have a family history of a particular illness, then your health insurance premium will probably be higher due to the higher risk involved.

Location - Your premium will be affected by the city you live in because every city is different, in terms of risks and medical costs. For example, people living in North India are a lot more prone to lung diseases, due to the high percentage of pollution.

Additional Covers - One can customize their health insurance plan based on their personal requirements and health conditions. Therefore, when you opt for additional covers like a Maternity Benefit or AYUSH benefit, your premium too increases by a small margin.

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Benefits of Health Insurance

The following are the main benefits of being covered by a health insurance policy:

Cashless Treatment:

When you are covered under a health insurance policy, you can avail cashless treatments which essentially means that you can receive medical treatments without having to pay the hospital from your own pockets.

Cover for Pre- as well as Post-Hospitalisation Expenses:

Effective insurance policies offer coverage for pre- as well as post-hospitalisation expenses for a period of 60 days before and after an insured individual is hospitalised.

Transportation Expenses:

In case you hold a health insurance policy and get hospitalised the plan will cover the costs incurred on using an ambulance to transport you from your home to the hospital or vice-versa.

Medical Check-ups:

Most health insurance policies offer free health check-ups. However, most insurance companies only offer these check-ups for free depending on your No Claim Bonus.

No Claim Bonus:

If you hold a health insurance policy and do not make any claims over the course of an entire policy year, you will be rewarded in the form of a No Claim Bonus.

Room Rent:

In case you are hospitalised, you will have to incur costs on room rent. Having a health insurance policy will ensure that these costs are covered to a significant extent.

Tax Benefits:

Having a health insurance policy can offer tax benefits as well. The premium payments you make towards your health insurance plan qualify for tax deductions under Section 80D of the Income Tax Act.

Online Purchasing Facility:

Thanks to the advancements in technology, you no longer need to visit a branch of the health insurance company in order to purchase a plan. You can do so from the comfort of your own home or office.

Renewal:

The renewal of your health insurance policy can also be done online. There is also a lot of flexibility when it comes to renewing your insurance plan. You can alter the terms of coverage based on what you think will work best for you.

Cover for OPD Expenses:

Most of the traditional health insurance plans require the insured individual to be hospitalised for a minimum of 24 hours if they are to be eligible for reimbursements.

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Common Mistakes to Avoid when Purchasing a Health Insurance Policy

Choosing the right insurance plan can be a difficult task, but thanks to advancements in technology, the internet can now grant you access to a large number of options .This can be assessed and compared before you pick the plan that best suits your needs. People tend to make common errors when purchasing health insurance, and avoiding these mistakes can help you make the most of your health insurance policy. The following are the common mistakes you must avoid when purchasing health insurance:

  • Inadequate Cover

    The amount for which you are covered plays a crucial role in determining which policy will best suit your needs. Most people tend to choose plans with lower coverage as it helps them save some money. Lower coverage will help reduce the amount you pay as premium for your insurance policy. While it is important to save money, it is also crucial to ensure that you don’t be too stingy when it comes to buying health insurance as it could prove to be a hassle later.

  • Missing the Fine Print
    • It is important to have a look at the fine print before choosing the insurance policy. Going through the fine print will tell you all about the coverage offered by your health insurance policy
    • It will also tell you about the exclusions so you are aware of what you can and cannot claim
  • Comparison of Insurers

    Many people tend to go with the first insurance company they find. When purchasing a health insurance plan, it is crucial to compare as many plans as possible as it will help you identify which one best suits your needs.

  • Falsified Medical History

    People tend to lie about their medical history when purchasing health insurance as it tends to lower their premiums. When you purchase a health insurance plan, it is essential to be truthful about your past medical health and situations. When you lie about your medical history, there is a chance that your claims could be rejected if the insurer finds out about the same.Ensure that you submit the correct records so that you do not have to encounter a problem later.

  • Cashless Hospital

    The cashless facility is one of the most important things to look for when purchasing a health insurance plan. However, many people tend to even consider this facility when looking for policies. By finding an insurance provider that offers the cashless facility, you can rest assured that you will receive immediate treatment in case of emergencies and the insurer will cover the costs.

  • Careful Selection of Premiums and Co-pays

    When you purchase a health insurance policy, the insurer will provide with an option of co-pay. If you choose this option, you will have to contribute a certain pre-determined amount at the time of making a claim, and the remainder will be paid by the insurance company. The sum assured will not be affected by the co-pay amount.

  • Choosing Too Many Additional Riders
    • It is good to buy additional riders at the time of purchasing an insurance policy. This will enhance the protection you receive from the insurer at the time of a claim.
    • Make sure you do not opt for add-on covers just to add more protection to your policy. Purchase add-on covers that will be of use for you and your family.

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