Health Insurance 1495 views December 23, 2019

Your 20 Point Checklist to Buy the Best Health Insurance

The importance of health insurance is self-explanatory. Initiatives by government, different NGOs and aggressive marketing by the Health Insurers have spread awareness about the need for Health Insurance in India. Sighting great potential in the field of Health Insurance many companies have come up in the market. This leads to confusion amongst the potential buyer as they get confused about which insurer to select and which health product to buy.

Health Insurance

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However, there is a great need to educate the masses about the factors one must consider while buying health insurance online or by traditional channels.

Here is a 20 Point Checklist to Buy the Best Health Insurance

Claim Settlement Ratio

This is the most important criteria to be considered while buying Health Insurance. It is the ratio of claims settled to the total number of claims received by the company and is expressed in percentage. Higher the Claim Settlement Ratio, the better is the Insurer.


Many Insurers are present in the market. Hence one must check the credibility of a company before buying its health insurance product.

Market Presence

There is a tremendous increase in the number of health insurance providers in recent years. And many more companies are launching every year. However, one must consider the market presence of any company before buying health insurance.

Word of Mouth

The most simple and reliable way to know the service and performance of any company is ‘word of mouth’. One must have a word with existing customers and our close circle before buying health insurance.

Ease of Claim Settlement

Ease of claim settlement is as important as the claim settlement ratio. Stringent procedures and lethargic approach towards claim settlement are seen all over the industry. Hence one must buy health insurance from an insurer which provides easy and hassle-free claim settlement.


The health insurance must be reasonably priced. One must look for the insurer whose products are affordable. This lessens the chances of the policy getting lapsed.

Produce Range

One must look for insurance with a wide range of products. This gives the buyer an option to choose the best product most suited to his needs.


Every person’s need to buy health insurance is different. Thus, an insurance product must be flexible wherein one can select the health product according to his needs.

Hidden Conditions

An Insurance contract must be transparent. Hidden conditions and clauses tend to breach the trust of the customers. Hence one must buy Health Insurance from an insurance provider who has a transparent track record.

Prompt Service

It is a common experience that the service of any insurer before buying and after buying their products changes drastically. This results in more lapsation and a decrease in the trustworthiness of that insurer. One must consider the company’s after-sales service before finalizing an insurer.


Health Insurer with the highest number of network hospitals is most preferred. Along with that, an insurer must have a dense network of agents, brokers, branches, and offices.

Awards and Accolades

Awards and accolades are the scales where we can gauge the performance of an insurer. One must consider an insurer who has been awarded for its service by reputed institutes in the country.

Incurred Claim Ratio

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 75% to 90% is considered ideal for an insurer. Hence before buying health insurance one must consider ICR as an important factor.


The reputation of a company in terms of service, claim settlement procedures or satisfaction of customer are as important as any other criteria. One must look for an insurer which a good reputation in the market.

Inclusions and Exclusions

Health Insurance products have many inclusions and exclusions. One must be very keen on these terms. One must study these inclusions and exclusions deeply beforehand and then finalizing an insurer and its health product.

No Claim Bonus

All companies have a different set of rules for ‘No Claim Bonus’. Few provide it while few don’t. Also, the rate of bonus is different for different insurers. Hence one must have a detailed knowledge of the ‘No Claim Bonus’ before buying Health Insurance.

Waiting Period

Health insurance is a complicated subject. Every insurer and every product and every disease have a different waiting period. It is thus very important to know all these well before you finalize an insurer or insurance product and buy the product which suits your needs.


This is a facility provided by few insurers and on selected products. One has to consider top-up facility keeping future needs in mind.


Reviews about a Health Insurance company and its product by reputed surveys and media is an essential benchmark to gauge an insurer, one must consider these reviews before buying health insurance.

Add-on benefits

Add-on services like accident insurance, travel insurance, disability benefit and special discounts to corporate houses and students, etc. are provided by some insurers. Before finalizing an insurer or product one must consider the add-on with it.

So, if you keep all these in mind, you will surely be able to choose the best health insurance plan for yourself.

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