Which Is Best Health Insurance Company in India and How to Choose?

by SMCIB on Monday, 30 January 2023

Which Is Best Health Insurance Company in India and How to Choose?

Suppose, you want to buy a phone with the best features that align with your requirements and budget. So, you will go to the showroom and ask for the best models from various brands, and then choose the one that suits your requirements. You will also compare and contrast different phone models and then finalize the one that you want to purchase.

In the same way, whenever you decide to buy health insurance, you must always select the one that caters to your and your family’s needs. Since there are numerous plans and insurance companies in the market, you might get confused while choosing the best one for yourself.

So, in this article, we will share some valuable tips that will help you choose the best health insurance company in India.

Which Is The Best Health Insurance Company In India?

There are countless options of health insurance companies in the market that can help you meet your needs and requirements. They offer various plans that suit the different needs of different people. This makes it difficult to say which health insurance company is the best. One company may be good for you but may not be good for the other. So, before buying a health insurance plan for yourself, do not forget to jot down your goals and requirements. Conduct in-depth research to zero in on the insurance company (and plan) that will suit your and your family’s healthcare needs the best!

How to Choose the Best Health Insurance Company?

We have listed a few factors that you should consider to choose the best health insurance company for yourself -

  1. Product Portfolio

    In simple words, a product portfolio is a collection of all products and services that a particular insurance company offers. If you're looking to purchase insurance for a particular use case, you should have a look at the insurer’s product portfolio.

    You might have come across some health insurance companies that provide you with affordable policies with limited features. On the other hand, some may provide comprehensive policies with a long list of features and attractive premiums. Some companies also provide policies for specific use cases, such as senior citizens, cancer patients, diabetics, and people with severe medical issues. This will help you pick a plan with features and benefits that fit your specific healthcare needs.

  2. Comprehensive Coverage

    A health insurance company that gives you comprehensive coverage will ensure that a majority of your healthcare expenses will be covered by your health insurance plan. Comprehensive policies cover pre and post-hospitalization costs, daycare treatment costs, ambulance fees, check-ups, etc. These plans reduce your out-of-pocket expenses. So, before choosing a health insurance company, do not forget to compare the scope of coverage provided by the plans they offer.

  3. Claims Incurred Ratio

    Incurred claim ratio or ICR is the ratio of the total claim amount paid by the insurance company to the total premium collected in a financial year.

    If you want to look at the financial health of the insurance company, you must have a look at the incurred claim ratio. It indicates the insurer's capacity to settle claims.

    1. If the ICR is greater than 100%, the insurance provider has paid out more claims than the premiums they have received in a given fiscal year. This may signal that the insurer is facing losses, and thus, might increase premiums or deny claim settlement.
    2. If ICR is between 50% and 100%, the insurance provider is in good financial condition and is profitable.
    3. If the ICR is less than 50%, it means the company is making big profits but approving just a few claims. This shows that the company is either charging higher premiums or denying a greater number of claims.
  4. Solvency Ratio

    The solvency ratio is the insurance company’s capacity to pay off claims and meet its long-term financial obligations. The solvency ratio depicts the financial position of insurance companies. As per the IRDAI, all insurance companies have to maintain a health solvency ratio of 1055. If the ratio is high, it means that the health insurance company is financially sound and has a higher proportion of asset holding.

  5. Claim Settlement Ratio (CSR)

    CSR refers to the percentage of the claims settled against the total number of claims received by an insurance company in a financial year. Always choose a company that has higher CSR as this displays the company’s ability to settle claims, which in turn, increases the probability of your claim getting settled.

  6. Approval from IRDAI

    The Insurance Regulatory and Development Authority of India (IRDAI) is in charge of regulating and developing the insurance industry in the country. All insurance companies registered with the IRDAI must abide by their rules and regulations and maintain enough transparency in all activities they perform. So, if you want to buy health insurance for yourself or your family, it is always safe to stick with such IRDAI-approved companies.

  7. Network Hospitals

    Hospitals that have a tie-up with an insurance company are referred to as network hospitals. If you get treated at a network hospital, you can avail of a cashless treatment facility. The insurer will be responsible for settling all your hospital bills directly with the hospital. So, before buying a health insurance policy, always check the network hospitals list and confirm that your preferred hospitals as well as the ones in your vicinity are a part of it.

  8. Reviews

    Checking reviews and ratings is one of the easiest and most effective ways to choose your health insurance company. You can visit company forums, and the community, and check their social media handles to look for reviews. You can also survey past and existing policyholders and know all about the company’s query-solving and claim process. This will give you a clearer understanding of the insurer’s service.

Which is the best health insurance company in India?

As said earlier, there is no best company. It all depends upon a person’s individual needs and requirements. So, choose the one that fulfils your requirements. Here’s a comparison of some top health insurance companies in India.

  Aditya Birla Health insurance Care Health Insurance HDFC Ergo General Insurance ICICI Lombard General Insurance Niva Bupa Health Insurance
Founded in 2015 2012 2002 2001 2008
Claims Incurred Ratio (FY - 21-22) 78.36% 53.32% 82.40% 101.63% 47.92%
Solvency Ratio 177% 185% 164% 246% 172%
Claim Settlement Ratio (FY - 21-22) 92.25% 74.37% 92.10% 80.43% 89.07%
Network hospitals 10051+ 19000+ 13000+ 6700+ 8600+

To Conclude,

Choosing a health insurance company won’t be tough if you are well aware of your needs and requirements. Some may work for you, while some may not. Keep the above-mentioned factors in mind while choosing a health insurance company for yourself and your family. We are sure you will find the best one.

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