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What are the Best Health Insurance Companies in India as per IRDA Reports?

I personally prefer the Ford Figo as it is a reliable and efficient car. My father is more of a fan of his For EcoSport as he feels it has more power. My brother actually is a big fan of the Tata brand. Bottom-line – everyone has their own brand that they stand by. The same goes for other products and services that are available to consumers. There are multiple factors that go into judging a brand as the best in the country. Even health insurance companies are distinct brands, with different people standing by different ones.

Thankfully, the Insurance Regulatory and Development Authority of India (IRDAI) is the authority that creates an Annual Report of all Indian insuring companies. The IRDAI regulated all kinds of insurance companies, life & non-life included. IRDAI’s Annual Report easily defines the best health insurance companies in India. The Annual Report is made up of certain considerations that help IRDAI judge.

Some of these considerations include:

Incurred Claims Ratio – Essentially, the Incurred Claims Ratio takes a measure of the ratio of medical claims handled by the insuring company when compared to the total premium collected. This ratio is represented in the form of a percentage. It is arrived by multiplying the total number of claims with the total premium earned divided by 100.

The insured person benefits if this ratio is high. This is so as this directly means that there is a good possibility of the claim being accepted. Yet, a high ratio of more than 100% is bad for the insuring company. This directly translates to lower profits for the insurer. Eventually, though a high Insured Claims Ratio gives the consumer confidence in the company’s claims processing ability.

Some of these considerations include:

Incurred Claims Ratio – essentially, the Incurred Claims Ratio takes measure of the ratio of medical claims handled by the insuring company when compared to the total premium collected. This ratio is represented in the form of a percentage. It is arrived by multiplying the total number of claims with the total premium earned divided by 100.

The insured person benefits if this ration is high. This is so as this directly means that there is a good possibility of the claim being accepted. Yet, a high ratio of more than 100% is bad for the insuring company. This directly translates to lower profits for the insurer. Eventually though a high Insured Claims Ratio gives the consumer confidence in the company’s claims processing ability.

Solvency Ratio – this ratio points to all the assets of the insuring company which can handle all of the liabilities of said company. Some of these liabilities include expenses, claims etc. The higher the ration, the better it is for the consumer. This follows the principle that a high ratio will ensure claim acceptance in the case of a bulk claim request.

Business Volume – the business volume of an insuring company is all the policies that have been allotted in year along with the premium made on the policies. A high business volume works best for both the insuring company and the consumers as it inspired trust.

The best health insurance companies in India (as per IRDA reports):

When we look at companies that are judged best on the basis of Incurrent Claims Ratio – United India, Oriental Insurance, New India as well as National Assurance are the at the top in the Public Sector Health Insurance market. New India has improved since last year’s report from 98.78% to 114.64%. Oriental Insurance has reduced from 117% to 114%.

For Private Sector Health Insurance companies, companies such as MAGMA HDI, Liberty Videocon, IFFCO-TOKIO have more than 100% Incurred Claims Ratio – good for the consumer but not really for the company. Reliance, Raheja QBE, Bharti Axa and Universal Sombo have decent Incurrent Claims Ratios from 85% to 96%. Amongst, Standalone Health Insurance Companies, Cigna TTK and Apollo Munich have a reasonable Incurrent Claims Ratio.

Another aspect of importance for judging the best health insurance companies is the customer grievance status. The best handlers for customer grievance in the private sector have been L&T, MAGMA HDI, Shriram, Universal Sompo, Tata AIG, IFFCO-TOKYO and Liberty Videocon. In the public sector, United is the best performer and Max Bupa reigns amongst standalone companies.

Closing thoughts

Now that we know what the IRDAI’s report is, there are a few considerations to be kept in mind. Pertaining to coverage amount, the sum assured should be given importance. You should also buy the policy at a younger age. Choose a policy that covers most ailments. Instead of buying a family cover when there is someone in the family at an advanced age of 65, buy an individual policy for that one person. Choose a company that allows coverage of existing diseases at an early stage. Read the policy diligently and get all your doubts and issues clarified before signing up.

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