Which health insurance is the best to buy in India in 2019?

Authorization letter to claim benefits

I have spent few days reading articles, talking to insurance agents, online agencies gathering information to find the right insurance policy for my family.

These factors have helped me identify the best one among so many in the market today.

,Following are some of my key takeaways.

Every point also includes the corresponding information from the policy I have chosen for my family.


MAXIMUM HEALTH COVERAGE - Always prefer a plan that offers maximum health coverage and maximum amount for the treatment.

Today, simple heart surgery can cost between 5-10 lakhs which triples if you end up in some suite room of a good hospital.

People say go for a lesser cover if you are young, however, the rate at which critical illnesses are detected even among the youth today, it would be prudent to opt for a higher cover.

,I am 33 and have taken an insurance cover of Rs.

25 L for me and my family.

Comes to approximately 2300/- per month.


FAMILY FLOATER - If you are a family person, it is better to opt for a family floater plan which covers your family.

It means, anyone can utilize the total cover during medical treatment.

,I have opted for a Family Floater.


NO SUB-LIMITS - Most insurance policies come with sub-limits on per day medical expenses, room rent in case of hospitalization etc.

Consider those plans that offer the highest slab on room rent or other health care expenses.

For example, the room-rent may be capped at 1 percent of the sum insured or only an AC Room and not suite.

So, irrespective of the total sum insured of the policy, one may have to pay out-of-pocket hospital bills unless one sticks to the limit.

,I have opted for a policy with no cap on room rent.

So it doesnu2019t matter if itu2019s a suite or AC room or shared.


RESTORE BENEFIT u2013 This is the most important feature of any insurance policy.

A comprehensive health insurance policy usually covers hospitalization expenses up to the total sum insured.

Considering the rising health-care costs, it is quite possible that the entire sum insured gets exhausted in a single hospitalization and this is when u2018restore benefitu2019 in a health insurance feature comes in.

Restoration benefit is a feature that reinstates the total sum assured if it is used up in any given policy year.

However, the premium for policies with restore benefits is also high.

,In my policy, there is an instant addition of 100% Basic Sum Insured on complete or partial utilization of existing Policy Sum Insured and No claim bonus (if applicable) during the Policy Year.

The Restore Sum Insured can be used for all claims under the Inpatient Benefit.


NO CLAIM BONUS (NCB) - In case you do not claim, insurance companies provide a bonus by increasing your coverage on renewal.

Increase in your coverage is very useful as the medical costs keep rising by almost 15% every year.

No-claim bonus typically comes in two different forms.

,Discount on the premium amount charged for a policy,Cumulative benefits offered in the form of higher sum insured amount,I recommend option 2 as a few rupees discount in yearly premium is hardly even worth the comparison.

,NCB for my policy which gives me both discount as well as cumulative benefits.

Details below:,A bonus is applied by enhancing the renewed policyu2019s Sum Insured by 50% of the Basic Sum Insured of the previous yearu2019s Policy.

The maximum bonus will not exceed 100% of the Basic Sum Insured in any Policy Year.

,A discount is applied at each renewal if the insured member achieves the average step count target on the mobile application provided by us in the specified time interval (calculated from the policy risk start date) as per the grid in the policy document,6.

INCURRED CLAIM RATIO (ICR) - The ICR metric indicates a general insureru2019s ability to pay a claim.

For instance, an ICR of 85% implies that the company has spent Rs 85 on claims for every Rs 100 collected as premium.

An ideal ICR range recommended by experts is between 60 - 90%, which indicates a healthy settlement of claims by the insurer against the premium collection.

,My policy provider has an ICR of 62.

47 % as per IRDA Annual report for 2017-2018,7.

CO-PAYMENT u2013 Most providers donu2019t charge anything till the age of 65.

After that, it is generally 10-20% of the total bill.

I believe that is the age when one would be treated more often and apply for claims.

Also, I donu2019t want the headache of paying anything irrespective of the age.

,My policy has no co-payment charges at any age.


HOSPITAL NETWORK - Network listed hospitals are cashless, non-network is reimbursable u2013 Opt for a policy that has the most number of hospitals in its network.

,My provider has 4500+ network hospitals in Bangalore which is pretty decent.

There are other companies which have 8000+ hospitals in their network.


TYPE OF INSURANCE COMPANIES: There are 2 types of Insurance providers.

Standalone and General Insurance companies.

Standalone is better than General Insurance providers because of the faster approval process.

When a claim request is made u2013 hospitals write a pre-authorization letter to the insurance company for cashless approvals.

A general insurance company takes longer time for approvals when compared to standalone companies where the same comes within an hour.

,My policy is from a standalone health insurance company.


PRE-EXISTING ILLNESSES u2013 The lesser the waiting period the better.

,My policy covers them after 3 years.


BUYING ONLINE vs AGENTS u2013 They say itu2019s good to have a face associated with the insurance provider and thatu2019s why people recommend taking via agents.

However, there is no guarantee that person will be available for you in your time of emergency.

With online, you will have all your documents in one place and better customer support through dedicated helplines.

Either way, you will be paying the same premium.

,I bought my policy online through Coverfox for convenience purposes.


OTHER GOOD TO HAVE FEATURES (my corresponding policy cover detail),Eye cover (Not covered)Pregnancy Cover (Not covered)Dental Cover (Not covered)Health Checkup (Covered)Critical Illness Cover (Not covered)13.

GENERAL FEATURES - covered by most policies,Daycare treatments (Covered)Expenses before and after hospitalization (Covered)Daily hospitalization allowance (Covered)Emergency Ambulance expenses (Covered)OPD expenses (Not covered)I hope this analysis is helpful for you to determine the insurance plan that best suits your needs.

I dont want to promote any insurance company on a public forum like Quora.

,u2014u2014u2014u2014 u2014u2014u2014u2014u2014u2014u2014u2014u2014u2014u2014u2014u2014u2014,UPDATE23 Dec, 2020- I have not been active on Quora and havent been able to respond to your Insurance queries.

,However, Finshots have come up with an easy tool called DITTO to understand your chosen Insurance policy.

Do explore, as it will help answer most of your queries.

Authorization letter to claim money in bank

I will answer from the process here in the Philippines, and it is not difficult.

,But before you write an authorization letter, you make sure that you authorize a person with a valid ID.

,You can write the content of your letter following this order:,Mention your name and a short description of who you are.

,Mention in the letter who are you authorizing to claim the money.

,Mention in the letter why you are authorizing somebody else to claim the money.

And it helps if you provide a short justification.

,Signify your signature below.

,I have used this format personally in claiming money in banks and Western Union.

,Thank you and I hope my answer is helpful.