Since people do not understand the complex terminologies of the health insurance plan, they prefer not to buy the product altogether. However, buying an adequate health insurance plan should be an integral part of any financial planning.
However, most people get overwhelmed with the different types of plans available in the market. What people forget is that there are certain things that you need to take into consideration when buying health plans. One of the most crucial factors to consider is the Incurred Claim Ratio (ICR).
The incurred claim ratio is nothing but the net claims paid by the insurer against the net premiums collected over the said financial year. In simple terms, the incurred claim ratio is the total claims paid by the company in the year divided by the total premiums collected during that year.
The information related to the incurred claim ratio of the company is readily available online along with the sales of the health insurance products. It is highly recommended to check the ICR of the insurer before buying health insurance from them.
Having a complete understanding of the incurred claim ratio will make it easier for you to choose a health plan that best suits your medical needs. As a matter of fact, a health insurance plan is bought to safeguard you and your loved ones in case of medical emergencies. It is thus advised to buy a health plan from an insurer with a high incurred claim ratio.
The higher the incurred claim ratio of the company, the higher are the chances of your claim to be settled in the time of need. For instance, if an insurer has 98% incurred claim ratio, it means that they spent 98% on claim settlement in the given year while only earning 2% in profit.
It is also wise to choose an insurer that offers a swift claim settlement process. Most insurers in India have a lengthy process when it comes to claiming health insurance. On the other hand, there are quite a few insurers that offer easy claim settlement process online to avoid any related delay.
Apart from the incurred claim ratio and swift claim settlement process, there are many other factors that you need to take into consideration when buying health insurance plans in India. Aspects such as premiums charges, policy coverage, exclusions, waiting period, etc. need to be evaluated before the purchase.
In India, people are quite hesitant to buy a plan since they find it difficult to understand the product. Buying adequate health insurance becomes more convenient if you know the things that need to be taken into consideration.
With this article, we believe that it has helped you understand the importance of incurred claim ratio when choosing health insurance in India. Moreover, it is necessary that you choose an insurer that offers a hassle-free claim settlement process. In fact, it is wise to compare different health insurance plans online based on the above factors and then choose a coverage that best suits your medical-related needs.