More people carrying their health insurance plan for improved coverage, better features
Written by Amit Chhabra
Since the outbreak of the COVID-19 pandemic in March of last year, India’s health insurance industry has experienced a much anticipated revolution. Since last year, customers have invested in health insurance in high numbers as thousands of people continue to test positive for COVID-19 every day in various parts of the world. The upsurge in sales of health insurance contracts seems logical given the central objective of health insurance; cover hospital costs for the treatment of Covid-19 or any other ailment.
Buying a health insurance policy for you and your family is important not only to protect yourself against the pandemic, but also for all other illnesses, as medical care is quite expensive, especially in the private sector. A one-time hospitalization can burn a hole in your pocket and derail your finances if you don’t have a health insurance plan in place. You can avoid all of this by simply paying a small annual premium against a health insurance plan.
In the past 12 months, most insurers selling health insurance plans in India have reported an increase of up to 40% in sales of health insurance plans. This is mainly because the awareness around Medicare has increased manifold. In addition, the importance of being financially prepared for unforeseen medical expenses is at the forefront of consumer concerns.
With media reports filled with cases of hospital bills for COVID-19 treatment exceeding several lakhs, people are well aware that good health is no longer something they can take for granted.
In recent months, the number of people transferring their health insurance policy to the highest sum insured has increased from 30% during the months of March-May 2020 to 80% today – from March onwards. May 2021. Of all of the clients who carried their policies, 48 percent were aged 30 to 45, followed by the 45 to 60 age group which accounted for 25 percent.
People who bought health insurance coverages with a minimum sum insured – mostly between Rs 5 lakh and 10 lakh are now improving their coverages by moving them into health policies with a higher sum insured. The available trends show that 40 percent of clients have switched to coverage above Rs 25 lakh, while 18 percent have shifted to coverage of Rs 10 lakh to 25 lakh.
The average blanket that customers buy this year is around Rs 25 lakh, which almost doubled from the previous year. This is mainly due to the fact that health plans with Rs 1 crore sum insured are now available at almost the same price as Rs 10 lakh health coverage. For a 30 year old person, while Rs 10 lakh coverage costs Rs 600 – Rs 800 per month, for the same client Rs 1 crore, the insured health plan costs Rs 800 – Rs 1000 per month. By simply paying Rs 200 – Rs 400 more, customers can now enjoy much improved coverage with a plethora of additional features.
Another big reason why most people opt for higher face amount coverages is that customers now have the option of paying premiums in easy monthly installments instead of the lump sum all at once. This means that instead of paying Rs 12,000 as a lump sum for insured coverage of Rs 1 crore, customers can pay Rs 1,000 per month for the plan while enjoying all the benefits.
The easy monthly payment option has dramatically increased the affordability of higher face amount plans among middle class families. Another big reason people carry their health insurance policies is the mandatory co-payment clause and room rent caps in health insurance policies. In the past year, 35% of clients have transferred their policy due to rent caps and user fees. By transferring their policies, customers have the option of selecting the room category of their choice during hospitalization and they do not have to bear any charges on the hospital bill with the zero cost sharing feature.
Another interesting trend seen in recent months is that people who bought Covid-specific policies like Corona Kavach and Corona Rakshak last year are now moving to full health insurance plans. So far, more than 20% of buyers of Covid policies have switched to full plans.
Customers are slowly realizing that comprehensive plans will give them full protection against hospitalizations not only due to Covid-19, but other illnesses as well. Of all customers who have worn their specific Covid policies in a set, 43% are in the 30-45 age group, followed by 30% of those under 30.
With the intervention of the insurance regulator, for the benefit of clients, the porting process has been made very smooth and you can easily change insurer online if you are not satisfied with the current insurer and wish to migrate to a new one. better font. By following a few simple steps, you can transfer from one insurer to another.
With the many changes in the underwriting rules, customers do not need to serve a new waiting period when transferring from the insurer and all other benefits such as the no-claim bonus continue to work without interruption.
The author is Head-Health Insurance at Policybazaar.com. The opinions expressed are those of the author.