Experts delve upon the financial benefits of availing a medical insurance

In a postpandemic India people have woken up to the importance of having medical insurance This is not easy in a volatile market As of today medical inflation in India stands at 1437 mdash the highest among all Asian countries mdash and is expected to grow globally by 1037 this yearThe term refers to rising costs of medical procedures with every passing year These could be the result of pandemics as recently evidenced increased costs of medical equipment and drugs high demand or service costs The Indian market faces a combined effect of multiple factors in play for its inflationLack of awarenessMedical insurance has only caught attention after the recent pandemic Chris George CEO and cofounder of Qube Health says ldquoIt is ironic and unfortunate that even after 35 years less than two or three percent of the population has health insurance Traditionally it has been viewed as a tax mitigation measure Hence people opt for the bare minimum in terms of coverrdquoAlways examine the insurerrsquos claim turnaround rateThere is also a misconception that insurance is an investment Metilda Stanley MD and CEO Techsurance Pvt Ltd warns against it ldquoThe layperson needs to understand insurance is not an investment It is a safety net a plan B All your financial plans can go haywire if you donrsquot have this contingency plan against age and accompanying health risksrdquo she saysBoth agree that many Indians tend to avoid insurance till a medical emergency befalls them ldquoWe remain among the highest spenders of outofpocket medical expenses in the worldrdquo George remarksAvoiding high premiumsIn such situations finding the right insurance to suit your medical conditions remains a challenge The Qube Health CEO adds ldquoIt always helps to start early At 20 you can avail of a health insurance policy for R1 crore at a far lesser premium But then how many young individuals will think of buying insurance at their agerdquoStanley agrees ldquoInsurance requires you to gauge potential risks expenses and future ailments It is difficult and few 20 or 30yearold want to do thatrdquoIndividuals above the age of 50 remain vulnerable and need the buffer of insuranceRishi Piparaiya a former banker and author of Three Pigs to Financial Freedom explains ldquoInsurers examine your age or health With time you will develop lifestylerelated diseases which makes it harder to obtain good cover at low premiumsrdquo This affects individuals above the age of 50 the most Stanley confirms ldquoIn such cases group covers are the only way out If an employer offers to cover you and your parents it is an opportunity Family floater plans help but the premiums are expensive Regardless insuring them can prove a major mitigation since they are the most vulnerable to illnessrdquoReading the fine printPiparaiya notes that the pandemic has woken people up but there is still much to learn ldquoWhen buying insurance you need to carefully check factors such as hospitals covered by the plan treatments insured and whether or not they fall in the cashless categoryrdquo he saysStanley adds ldquoA prudent individual should invest a factor of their annual income for future insurance Always confer with four or five companies It also helps to know their claim settlement ratio and turnaround timerdquoChris George Metilda Stanley and Rishi PiparaiyaGeorge points out ldquoIndividual covers are preferable over the group cover Also the hospitalisation of one member of the family should not jeopardise the othersrdquoCutting through the red tapeThe fine print and details are often what confuse people Then there are factors such as cap or no cap Piparaiya points out that cap and topups are simply addons that can be factored in later ldquoThey affect factors such as the quality of medical service rooms and facilities etc Having insurance with as much cover you can get is priorityrdquo he saysStanley explains that the red tape and details are necessary for the insurer as well ldquoInsurance is always a partnership and has to be a winwin for both parties Insurers are also regulated and held accountablerdquo she says She suggests individuals maintain full disclosure with their insurers beforehand ldquoIt helps keep them on your side and avoid delays Also do not use up your insurance for cosmetic surgeries such as dental or cosmetic makeoversrdquoChanging perceptionsThrough it all the experts agree that the pandemic has changed perception among Indians ldquoThere is a growing number opting for medical insurancerdquo George saysIn the end medical insurance is not a growth investment but a safety net for the future Stanley remarks ldquoOver the long run insurance becomes an asset People have a misconception that if they have been paying a premium they need to use the policy somehow No it is for your peace of mindrdquoFrom the doctorrsquos lensDr Vishwanathan Iyer neurosurgeonThere are a growing number of policies that are crafted to suit specific requirements From the hospital perspective the presence of insurance allows us to reduce waiting time for medical procedures I do not have to wait for the family to pool resources while the patient struggles It is definitely key in critical cases and helps the patient The good thing though is that I see many among the younger generation opting for medical policies Many firms have also begun to offer covers for their staff It ensures loyalty and also helps with their tax mitigation Either way it proves to be beneficial