Avoid partial payout: Buy health cover with fewer sub-limits

At a recent Confederation of Indian Industry (CII) summit, Satyajit Tripathi, member (distribution), Insurance Regulatory and Development Authority of India (Irdai), highlighted that grievances in general insurance, especially health insurance, mainly revolve around claim payments.

- KARTHIK JEROME

In many cases, he said, the claim amount paid is significantly lower than expected, or claims are outrightly rejected.

KEY REASONS FOR REDUCED PAYOUTS

Policies have several exclusions and limitations. "If the policyholder does not take these into account at the time of purchase, it can result in a lesser claim settlement amount and an unpleasant claims experience," says Parthanil Ghosh, director and chief business officer (CBO), HDFC ERGO General Insurance.

Many issues arise due to how health insurance is sold and bought. "Customers frequently sign without reading the terms and conditions, resulting in a poor understanding of coverage, and eventually leading to partial payouts," says Amit Chhabra, chief business officer, general insurance, Policybazaar.