Nithin Kamath, co-founder and CEO of Zerodha, took to X, formally known as Twitter, to emphasise the need for Indians to secure comprehensive health insurance for themselves and their families. Kamath pointed out that merely possessing insurance is insufficient, as insurance companies often employ various tactics to avoid paying the full sum and even reject claims entirely.
He underscored the importance of being well-prepared for potential health-related financial burdens and encouraged individuals to educate themselves about common reasons behind claim rejections and how to address them.
This isn't the first time that Kamath has stressed the importance of health insurance. In March, he said that purchasing a health insurance plan is the most crucial financial investment one can make for their family and that this investment should be made even before embarking on one's financial journey.
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.
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.
Here's a look at claim settlement ratio of some of the health insurance firms:
| Insurer Name | Claim Settlement Ratio | Incurred Claim Ratio |
| (2021-22) | (2021-22) |
| Aditya Birla Health Insurance | 93.70% | 69.56% |
| Bajaj Allianz Health Insurance | 93.10% | 90.64% |
| Care Health Insurance | 87.10% | 65.07% |
| Cholamandalam Health Insurance | 87.50% | 117.08% |
| Digit Health Insurance | 84.60% | 48.94% |
| Future Generali Health Insurance | 80.50% | 88.44% |
| HDFC ERGO Health Insurance | 95% | 97.47% |
| IFFCO Tokio Health Insurance | 93.60% | 130.65% |
| Kotak Mahindra Health Insurance | 85.40% | 72.11% |
| Liberty Health Insurance | 90.50% | 89.30% |
| Magma HDI Health Insurance | 81% | 66.42% |
| ManipalCigna Health Insurance | 89.80% | 76.17% |
| National Health Insurance | 94.80% | 125.53% |
| New India Assurance Health Insurance | 97.70% | 124.54% |
| Niva Bupa Health Insurance | 90.10% | 62.12% |
| Oriental Health Insurance | 89.90% | 139.86% |
| Raheja QBE Health Insurance | 95.80% | 109.54% |
(Source: Policybazaar)
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.
(Edited by : Amrita)
First Published: Nov 3, 2023 2:07 PM IST
