Investment has become a significant topic of discussion among the youth today. Before investing their hard-earned money, there are essential points to consider. Whether you choose short or long-term investment options, especially as a beginner, the vast amount of available information can be overwhelming.
Among the various investment avenues, the stock market, trading, and mutual funds are popular choices. However, before diving into these options, it is crucial to prioritize your health and your family’s well-being. Health insurance might be perceived as an expense rather than an investment, but with the rising number of diseases and costly treatments, it proves to be a valuable long-term investment. Health insurance provides coverage for unforeseen medical expenses and offers benefits in tax returns and cashless medical treatments. The National Health Policy 2015 data highlights that catastrophic medical expenditures push around 63 crore people into poverty.
Health insurance is considered vital in most developed countries worldwide, even in smaller-population nations like Japan. In India, there is still hesitation among people to invest in health insurance, with the belief that they will always remain healthy. However, having health insurance serves as a much-needed financial backup.
When deciding on the best health insurance company for such an investment, IRDAI publishes an annual list of the top health insurance companies in India based on their performance and Incurred Claims Ratio (ICR). Specialized Health Insurance companies and General Insurance companies (public & private) are authorized to offer plans to the public. Here is the list of the top 10 health insurance companies in India.
1) HDFC ERGO General Insurance Limited
HDFC Limited and ERGO International AG jointly operate this venture. ERGO International AG is Munich ReGroup’s insurance entity in Germany and acquired a 49% stake in 2015. The company provides products in three sectors: rural, corporate, and retail. Health insurance, along with travel, motor, home, cyber security, and personal accident coverage, falls under the retail sector. In the financial year 2019-2020, the Incurred Claims Ratio stood impressively at almost 74%, and it was 63% in the financial year 2018-2019. HDFC ERGO offers innovative benefits such as lifetime renewal and portability benefits for existing policies. In the financial year 2019-2020, HDFC ERGO achieved a high Claim Settlement Ratio of 99%.
2) Star Health & Allied Insurance Company Limited
It is a joint venture between ETA Ascon Group and Oman Health Insurance Company. Founded in 2006, it is a multinational Indian health insurance company with headquarters in Chennai, Tamil Nadu. Offering more than just health insurance, it also provides services in personal accident and overseas travel insurance. The company’s ICR for the financial year 2019-2020 stands at 66%. With an in-house TPA, they facilitate cashless facilities and introduce innovative products like Star NetPlus (for HIV+ patients) and Diabetes Safe (for diabetic patients). Furthermore, the Claim Settlement Ratio for the financial year 2019-2020 reaches 90%.
3) Niva Bupa Health Insurance Company Limited
A joint venture company was established in 2008 by Bupa Group, a UK-based international healthcare group, and Max India Limited. The company’s headquarters are located in New Delhi.
In 2019, the company introduced the ATH (Any Time Health) machine, enabling customers to purchase health insurance within a few seconds.
The Incurred Claim Ratio for both the financial year 2019-2020 and FY 2018-2019 was 54%.
Niva Bupa offers policies for citizens of all age groups to enroll in.
For the financial year 2019-2020, the Claim Settlement Ratio of Niva Bupa reached an impressive 96%.
Over the past few years, the company has received numerous awards for being the best product and brand in the industry.
4) SBI General Insurance Company Limited
This company is a joint venture between IAG (Insurance Australian Group) and State Bank of India.
It was founded in 2009 and has its headquarters in Mumbai, Maharashtra.
The company serves its products in India and provides services worldwide.
State Bank of India is the largest public sector bank, covering 110 cities and operating 23,000 branches.
The company offers health insurance products and various other insurance options such as vehicle, aviation, travel, home, and crop insurance.
For the financial year 2018-2019 and 2019-2020, the Incurred Claim Ratio (ICR) stands at 72%.
Additionally, the Claim Settlement Ratio (CSR) for FY 2019-2020 is 95%.
5) Care Health Insurance Company
The insurance company was founded in 2012 and has its headquarters in Gurugram, Haryana. It is a joint venture involving Union Bank of India, Corporation Bank, and Care Enterprises Limited (a direct subsidiary of Religare Enterprises Limited). Anuj Gulati serves as the Managing Director and CEO of the company.
The company offers insurance services in various areas, including travel, health, and accident. Despite its relatively short existence, it has experienced remarkable growth.
For the financial year 2019-2020, its Incurred Claim Ratio stood at 59%, and the Claim Settlement Ratio was 95%. These numbers demonstrate the company’s efficiency in handling claims.
The company is promoted by the makers of Fortis Hospital. It has also been recognized with the Best Medical/Health Insurance Product Award at the FICCI Healthcare Excellence Awards in 2015, 2018, and 2019.
6) Manipal Cigna Health Insurance Company Limited
Founded in 2014, this health insurance company has its headquarters in Mumbai, Maharashtra. It is relatively new in the Indian insurance sector but ranks among the best in the country. The company is a result of a merger between the Indian conglomerate Manipal Group and the leading US-based health service provider, Cigna Corporation. Operating in 11 cities, it offers a variety of health insurance products. In the financial year 2018-2019, its Incurred Claim Ratio was 62%, while in 2019-2020, it boasted an impressive Claim Settlement Ratio of 90%.
7) Bajaj Allianz General Insurance Company Limited
It is an Indian private insurance company. The company is a joint venture between Allianz, a leading insurer from Germany, and Bajaj Finserva Limited. It has been operating since 2001. Being one of the largest insurance companies in the private sector, it has a widespread presence with offices in 1100 cities and towns across the country.
This insurance company offers three major products: Health Guard, Star Package, and Silver Health. One notable achievement is that it was the first company to introduce captive TPA with certain efficiencies.
Looking at its financial performance, the ICR (Incurred Claims Ratio) for the company was 69% in the financial year 2018-2019 and increased to 71% in FY 2019-2020. However, in the financial year 2019-2020, the ICR improved significantly to 98%.
8) New India Assurance Company Limited
Founded in 1919, it is one of the oldest insurance companies with its headquarters in Mumbai, Maharashtra. The founders of this company were Dorabji Tata. Later, in 1973, it was nationalized. Today, it stands as the largest nationalized general insurance company, owned by the Ministry of Finance.
In terms of its gross premium collection, including foreign operations, it holds the position of the largest insurance company (nationalized). The insurance products it offers are diverse and include health insurance, general insurance, marine and aviation insurance, crop insurance, vehicle insurance, and more.
The company is particularly renowned for its Mediclaim policy. One distinctive feature of this policy is that it provides a differential rating for major metros compared to other locations. This approach caters to specific regional needs and demands.
For the financial year 2019-2020, the company’s ICR (Incurred Claims Ratio) was reported to be 92%.
9) Oriental Insurance Company Limited
This is a nationalized general insurance company, owned by the Ministry of Finance, Government of India.
Founded in September 1947, its headquarters are located in New Delhi.
With more than 1800 branches and 31 regional offices, it has an extensive network.
Apart from its branches in Dubai, Kuwait, and Nepal, it offers various health insurance products.
One of the key advantages is that customers up to 60 years of age do not require a medical examination.
Unlike some other companies, they require a medical examination for customers above the age of 45.
For the financial year 2019-2020, the Incurred Claims Ratio stands at 102%, while the Claim Settlement Ratio is 89%.
10) National Insurance Company Limited
It is a nationalized insurance company owned by the Ministry of Finance, GoI. Gordhan Das Dutia founded it in 1906, and its headquarters are in Kolkata, West Bengal.
The company operates in both India and Nepal.
It offers a range of insurance products, including health, general, marine, vehicle, and property coverage.
For the financial year 2019-2020, its Incurred Claim Ratio stood at 106%.
Among its various offerings, the company’s most popular health insurance product is Varishtha Mediclaim, designed for senior citizens.
