About 68% Indians have inadequate health insurance coverage: Survey

About 68 percent of Indians have less than ₹10 lakh in health insurance coverage, while 27 percent have less than ₹5 lakh, revealed a survey conducted by insurance company ACKO in six Indian metro cities.

In the survey, which covered over 1,000 people in the age group of 28 to 55, ACKO found out that following the COVID-19 pandemic, awareness about health insurance has increased.

However, it also added that the health coverage of most Indians is insufficient compared to the medical expenses.

Among other details, the insurance company said that though 60 percent say they understand the policy terms and conditions, but their awareness is primarily limited to cash treatment, accident cover, and 100 percent bill payment.

Also, 60 percent of respondents do not think of buying health insurance with over ₹10 lakh coverage, while 65 percent believe that ₹10 lakh health coverage is sufficient for them.

Apart from this, 64 percent said they have not increased the coverage and kept it the same as the previous year.

Full bill payment:

On this parameter, 46 percent of policyholders said that their health policy covers the entire ‘hospitalization along with consumables’, while 59 percent of potential buyers are looking for policies with 100 percent bill payment.

Also, 27 percent are unaware of the waiting period and said that 'there are no waiting periods in the health insurance policies', and 31 percent feel that they are covered from day 1.

Other parameters:

The survey even found out that among the existing and potential policyholders, the family floater policies are the top favorite, with 71 percent and 72 percent, respectively.

Citing the reasons, policyholders said that the plans offer them the option to include their parents, spouses, and children in the same policy.

Deterrents:

The deterrents working against the health insurance companies include a slow claim settlement process, partial bill payment, and inadequate network hospitals.

The survey found that 43 percent find the claim settlement process cumbersome. Also, 47 percent of policyholders and 56 percent of potential buyers find the lack of a 100 percent bill payment facility put them off. Inadequate network hospitals make 41 percent of policyholders and 44 percent of potential buyers uninterested in health policies.