Health Insurance 1557 views December 31, 2019

10 Point Checklist to Buy the Best Health Insurance

There is very little need to explain the importance of Health Insurance these days. Everyone is aware that it is our best friend in times of immense financial crises. Also, it is an invisible protector of our savings and fixed assets against the tornado of Hospitalization and other expenses during hard times.

Health Insurance

Please fill the details below and our policy experts will call you to help figure out the correct health insurance policy for your needs


There is a great increase in the number of people buying Health Insurance online as well as through agents, brokers or banks. Having health insurance or not, is not an issue nowadays. The real problems come while choosing an insurance provider and the insurance product.

There are more than three dozen Health Insurance companies operating in India today. All these companies cumulatively offer more than a hundred health insurance products. Thus, it is confusing for interested buyers.

To help you decide, we have come up with a 10-point checklist to buy health insurance for you to ease your buying process and help you select proper insurance which suits all your health insurance needs.

Checklist to buy the Best Health Insurance

Claim Settlement Ratio (CSR)

Claim Settlement Ratio is the ratio of claims settled to the total number of ‘Claims’ received by the company. A higher percentage of CSR represents a higher claim settlement in that company. There are insurers with more than 99% claim settlement ratio. These are the most efficient insurers. One must select such insurers while buying health insurance.

Incurred Claim Ratio

This is another criterion to be taken into consideration while buying health insurance. Incurred Claim Ratio is the ratio of the net amount of claim paid during a financial year against the amount of premium collected during the same period.

An ICR of more than 100% shows that the company is paying more claim amounts than the amount of premium collected. Such companies are incurring losses and tend to vanish from the market.

While the ICR less than 50% implies that the company is paying very less as compared to the premium gathered. It also shows that there is more claim repudiation. One must not buy health insurance from companies with ICR less than 50%

On the other hand, companies with ICR between 50% to 100% are considered stable. Because they pay claims and also earn profits. ICR between 70% to 90% is considered ideal for buying health insurance.


An Insurance premium is an amount we pay in lieu of promise that the insurer will pay the decided amount in case of unforeseen events. Although health insurance is a must for all, everyone can’t afford it because of the high premium. Also, high premium policies tend to get lapsed in the near future. This led to discontinuation or termination of the policy, depriving the policyholder of the benefits.
Thus, one must select the insurer whose premiums are reasonable and affordable.

Prompt service

Insurance is a service-based industry. Before finalizing an insurer, one must ensure that the company provides prompt service before and after sales and also during claim procedures.

Hassle-free Claim Settlement

One must prefer a health insurer who provides easy and rapid claim settlement. It saves time and gives customers a quality service during their troubled times.

Hospital Networks

Before buying health insurance from any insurer one must take into consideration the number of their network hospitals. Also, the company’s presence in the market, its branches, agents’ brokers, etc. One must prefer insurer with a good network of hospital and market presence.

Word of mouth

Advertisement and promotions of any products can be misleading up to some extent. This is applicable for insurance industries also, especially in health insurance. Thus, one must consult his close acquaintances about a particular insurer before buying health insurance.

Inclusions and exclusions

An in-depth study of the insurer and its product is of the utmost importance before buying health insurance. One must have a clearer insight into the product and the company. Knowing all the inclusions and exclusions is one of the mandatory things to reduce complexity afterwords.

Health insurance has many inclusions and exclusions for particular products or services or a particular plan for a particular medical procedure. It is advised that one must study them all and then select a health product.

Add-on benefits

Some Insurers provide many add-ons benefits along with basic policy benefits. Many times, these benefits are optional. The add-on includes accident insurance or travel insurance and disabilities. Also, there is some add on benefits like discounts for corporates and students or women. The facility of top-up is also one of the add-on benefits which some insurers provide. One must consider all these factors while finalizing an insurance provider.

Awards and accolades

An insurer or an insurance product is considered best if it is preferred by a large number of individuals. One more criterion for gauging the worth of a particular service or product is the number of awards or recognitions won by it in a prestigious event by a reputed institution.

People Also Read