HEALTH INSURANCE
Health insurance is a cover that covers the medical expenses of the policyholder. It is a protection against high hospitalization expenses, pre-medical, and post-medical expenses, daycare treatments, aIr ambulance, Ayush benefits, in some type of policies maternity and vaccination of child too.
In this article, we are helping you to consider the factors, before purchasing the health policy. so that you choose the best company and products.
Factors you should consider before buying health insurance and deciding on the insurance company.
- Incurred Claim Ratio
(ICR): The
ratio of the total number of claims received to the total premiums
collected in the same period by the insurance company is known as the
Incurred Claim Ratio. A high ICR gives you an idea that the insurance
company is more open to accepting new customers and more friendly to issuing
policies to people with pre-existing illnesses, and if you are one of those
customers with pre-illness, then you don’t have to wait much to get your
plan. The ratio also tells you about their relationship with the customer.
I.e Total value of the claim paid/ total value of premium collected
- Claim Settlement Ratio (CSR): The ratio of the total number of claims settled to the total number of claims received by the insurance company within the same duration of time is known as the Claim Settlement Ratio. It tells you how friendly the company will behave during the time of your insurance claim settlement. A high CSR is one of the factors that will assure you that the insurance company is more likely to settle your claim without any hassles.
I.e Total claim settled /(total claim received + outstanding claims at the start of the year(
- Network Hospitals: The insurance company you are going for your plan should have a great network of hospitals in each city all over the country, which cater to various classes of people without any discrimination. The network hospital should cater to A to Z medical situations from nursing homes, day-care centers, to multi-specialty hospitals so that you can be prepared for any ups and downs in your life.
- Waiting Period for pre-existing illnesses: Most important factor to consider before purchasing a plan is the waiting period for pre-existing illnesses. If your insurer has a longer waiting period for pre-existing illnesses, then it alarms you off that even though you are paying the premium timely, still you cannot make a claim for hospitalization. If you have some pre-existing illness, then this is the factor you should look very carefully at. The normal duration of the waiting period for pre-existing illness to be covered is 2 years; however, some insurer keeps it 4 years longer.
- Cost of Premiums: In the end, you should also
check whether your insurance is cost-effective or not. No doubt, the
amount of premiums varies from insurer to insurer. Your insurance company must have
different types of plans to suit different sections of people, such as
top-up plans, senior citizen plans, individual health plans, family
floater plans, and plans that are suitable for people with chronic
diseases like cancer and heart ailment.
Source of the report: IRDA annual report 2019-20
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