Nithin Kamath stresses on importance of health insurance: Here's a look at claim settlement ratio of key insurers

Kamath shared data indicating the average cost of in-patient care per hospitalisation in urban and rural areas as of 2014. He highlighted that over 6.3 crore Indians face poverty every year due to health-related expenses and cited research indicating that about 8-9% of Indian households fall below the poverty line due to healthcare costs.

Kamath concluded his Twitter thread by asserting that healthcare costs will continue to rise, and the only way to cope with this reality is to raise awareness about the importance of health insurance for all Indian households.

This time, to assist individuals in navigating the intricacies of insurance claims, Kamath shared a link to the post written by Shrehith Karkera, one of the founders of Ditto Insurance, explaining the common reasons why claims get rejected and what should policyholders do. Notably, Ditto Insurance is a Zerodha-backed insurtech startup.

It's important to note that purchasing health insurance is crucial, regardless of one's age, given the uncertainties of times. People often underestimate the value of getting insured at a young age, thinking it becomes valuable only later in life. However, unforeseen circumstances can strike at any point, and the amount of insurance needed depends on factors, including age, income, expenses, debts, dependents, location, health status, lifestyle, and budget.

At times, claim rejections can be distressing. However, the aggrieved do have avenues to raise complaints and make their voice heard.

In health insurance, 24-hour hospitalisation is typically considered a fundamental requirement for coverage. However, there are exceptions known as day-care treatments, offering coverage for medical procedures that do not require an extended hospital stay.

Notably, an insurance company's claim settlement ratio (CSR) refers to the number of claims successfully resolved versus the number of requests received in a given year.