Page 14 - The Insurance Times August 2024

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can be reduced to day one by paying
Health cover users borrow to pay medical bills about 20-odd per cent extra premium.
Many health insurance policyholders who get their claims settled through
reimbursement from insurance companies are end up borrowing money or Cash less... health cover
dipping into their long-term savings to cover medical expenses.
users borrow to pay bills
According to a survey of policyholders, 68% of claimants who used the re-
imbursement method did not have enough liquid savings to pay medical bills. Many health insurance policyholders
who get their claims settled through
The incidence of borrowing increased when treatment costs exceeded Rs 1
lakh, with the trend being more pronounced in smaller towns. reimbursement from insurance compa-
nies are end up borrowing money or
"The study reiterates the importance of increasing the proportion of cash- dipping into their long-term savings to
less claims in line with IRDAI's recent initiatives. It is also critical to note cover medical expenses.
that approximately 70% of respondents said that they would have either
needed financial assistance or drawn upon their investments if cashless According to a survey of policyholders,
claims had not been available," said PolicyBazaar CEO Sarbvir Singh. 68% of claimants who used the reim-
bursement method did not have
enough liquid savings to pay medical
Senior citizen health cover: got insurers to remove any upper age bills.
limit for entry. The second is plans de-
Opt for up to 20% deduct- signed specifically for seniors. The incidence of borrowing increased
ible to reduce premium The main benefit of a senior citizen when treatment costs exceeded Rs 1
Health insurance plans for senior citi- plan is witnessed at the time of issu- lakh, with the trend being more pro-
zens are becoming popular. According ance. "Many seniors already have nounced in smaller towns.
to data from Policybazaar.com, 25 per PEDs. These policies are designed to be "The study reiterates the importance
cent of all the health plans sold on their issued even to those with a medical of increasing the proportion of cashless
platform are now purchased for senior condition," says Kapil Mehta, co- claims in line with IRDAI's recent ini-
citizens. About 35 per cent of these founder, SecureNow. tiatives. It is also critical to note that
purchases are by children for their According to Ashish Yadav, head of approximately 70% of respondents said
parents. Among their non-resident In- products and operations, ManipalCigna that they would have either needed
dian customers, 60 per cent purchase Health Insurance, "Their key feature is financial assistance or drawn upon
health insurance plans for their par- comprehensive coverage for medical their investments if cashless claims had
ents in India. expenses, including PEDs, from the not been available," said Policy Bazaar
91st day onwards." CEO Sarbvir Singh.
Two categories of plans are available.
The first is the standard health cover, Siddharth Singhal, business head- While cashless treatment is the pre-
which is open to all age groups, includ- health insurance, Policybazaar.com, ferred option among policyholders,
ing seniors, now that the regulator has says in many policies the waiting period many are unable to access the same

The Insurance Times August 2024 13