It is rightly said that necessity is the mother of invention. This also applies to health insurance. Declining lifestyles and rising cost of healthcare in India have paved the way for health insurance services. This need has been exacerbated by the fact that, unlike in the West, social security systems do not exist in India. Governments have made all provisions to extract taxes from citizens at all possible points but when it comes to healthcare and social security, they have not done anything at all.
Thus, the responsibility for securing oneself lies with the citizen. But it is not easy to get the right health insurance policy. There are more than twenty general insurance companies offering different types of health insurance plans in India. Oftentimes, people end up buying health insurance plans that don’t suit them and that don’t help them during their time of need.
Therefore, it is crucial that you understand the nuances of health insurance plans and only then make a decision. Here is a quick list for you.
What do all health insurance plans cover?
Health insurance plans are primarily intended to cover you against hospitalization and critical illness. Most plans cover this. But many plans do not cover certain types of health conditions. For example, you can find many medical plans that do not cover blood pressure and diabetes-related issues.
The scope of coverage can also be different. For example, not every plan covers post-hospital expenses. In some cases, the coverage period can be up to 45 days and in some cases it can be up to 1 week.
It is your responsibility to check these matters. If you depend on the insurance agent to go after you, it can cost you dear on later dates. Agents are interested in making sales and commissions. They may show concern and tend to offer you the best plans, but the reality may be very different. So, just take care of these aspects.
The development of health insurance industry in India has stimulated insurance companies to offer comprehensive plans. A large selection of riders is also at your disposal. Thus, if you buy a standard insurance policy, you can add passengers who can provide you with coverage against many other risks like permanent disability benefit, diabetes coverage, etc.
Do they cover pre-existing conditions?
Most medical claim plans in India do not cover pre-existing conditions unless specified. Do not assume in this matter. If you’re looking for coverage against a pre-existing medical condition, spell it out in the first instance. You can compare health insurance plans online and consult with our customer service center through online chat or phone call option.
There are plans that cover pre-existing illnesses in certain circumstances. Generally, there is a predetermined period under which pre-existing conditions are covered. The cost of these plans is naturally higher than the standard ones.
Can multiple family members be covered under one plan?
Yes, this is possible. You can simply choose a family floating plan and cover your family members under one plan. There are countless benefits to these plans. The premium is slightly higher but much lower if you choose different health insurance plans for different family members. The collective cost of the various plans is much higher.
Family floating plans, at the other end, are cost effective. The most common question about floating family plans is what happens if one member uses up the coverage limit and another member gets sick. There are solutions to these conditions.
You can increase the coverage limit during the policy period. Of course, you need to pay some extra premiums to get extended coverage.
Can you switch from one health insurance plan to another?
Portability is not just limited to the telecom sector. The Insurance Regulatory and Development Authority of India (IRDAI) has made portability in the health insurance sector.
If, for any reason, you would like to change your health insurance carrier, you can apply to switch. Health insurance is offered by general insurance companies, yet they cannot deny your portability claim.
They can try to keep you but in the end, it’s up to you to make the final decision. If you encounter any issues with the Health insurance plan, you may file a complaint with IRDAI’s online consumer complaint handling system. It is amazingly effective and you can expect action within 15-45 days.
However, IRDAI has taken strict measures to protect consumer rights, and there is every possibility that your complaint will be resolved by the insurance company itself at the first stage and you do not need to approach IRDAI in this case.
What about tax credits?
In the current financial year ending March 2015, you can claim a tax deduction of a limit of Rs 15,000 for the payment of health insurance premium, under section 80d of the Income Tax Act. From the next financial year, this limit is set at Rs 25,000 per annum.