If you are a regular Mint Money reader, then you know some of the basics of buying health insurance. At Mint, we prefer health policies that are comprehensive and with no restrictions in the form of sub-limits, co-payments or disease-wise capping. In fact, the Mint SecureNow Mediclaim Ratings (MSMR) also rate health insurance plans on how comprehensive they are. But is getting a top-rated health insurance policy enough? Yes, to a large extent. But some issues can still crop up. Mint spoke to experts that work with insurers, customers and hospitals to understand some of the recurring issues customers face.
Spike in renewal premium
Experts agree, and reader feedback confirms, that a sharp hike in renewal premiums is one of the biggest customer worries. Yes, premiums go up with age as well as medical advancement; but sometimes the hike can make renewing the policy unaffordable. For instance, a 54-year-old reader wrote to us that his renewal premium had increased from Rs19,212 to Rs26,524 for a sum insured of Rs6 lakh, and that ageing people like him had no recourse but to continue. Also, if you have made claims on your policy or are saddled with an illness, porting to a different insurer becomes difficult. “The insurance regulator does approve huge hikes in premiums because it looks at the books of health insurance (companies), which are bleeding. That is a result of poor underwriting (that is: ascertaining how much premium should be charged based on various factors) and later on it gets compensated by hiking the premium,”said Mahavir Chopra, director-health, life and strategic initiatives, Coverfox.com, an online insurance broker. “There should be a cap on how much the renewal premiums can increase,” he added.
