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Understanding How Health Insurance in India Works


Health insurance plans provide the essential security shield against medical emergencies. The better the insurance policy, the more comprehensive benefits you will receive. This is the reason why people invest a lot of time in finding the best health insurance for themselves and their family members. In this article, let’s understand the nuts and bolts of health insurance and what differentiates an ordinary health plan from the best one.

Everything About the Best Health Insurance in India

In India, there were 32 non-life insurance providers as of January 2020.[1] And the government approved 538 policies in 2020-21 as a result of revision or fresh applications. This number excludes the Corona Kavach policies – a corona-specific health insurance plan that was made mandatory by IRDAI to offer post-COVID. The more types of health insurance plans, the more difficult it becomes to choose the right one. So, how would you find the best health insurance out of all? Here’s a simple checklist to follow:

Required Cover

The first step in finding the right health insurance in India is to decide how much coverage you will need. Firstly, consider the age, gender, income, health conditions, medical history, and family health history of the members to be insured. A clear estimate of the required coverage amount will allow you to find and move forward with a suitable plan.

Selection Process

The next step is the selection process of the insurance policy. It begins by comparing several health insurers based on their trustworthiness, types of plans, benefits available, claim settlement ratio, government recognition, public relations, and company profile. Once you shortlist a few insurers and a specific health cover, compare their health plans based on the premium amount, the coverage included, and the maturity amount. It would be best to go through the terms and conditions of the selected policy to know any hidden clauses and the policyholder’s liability.


Every insurance policy has some requirements to obtain approval from the insurance provider. Keep these documents handy when purchasing health insurance.

• Policy Application Form

• Photographs

• Photo ID

• Proof of age and address

• Contact Details

• Bank details (in case of auto-debit of premium)

Purchasing Process

After arranging the documents, you need to submit the same to the insurer online or offline. The next step will be to make the payment, collect the receipt and wait for the approval. In case of a rejection, the insurer will refund the payment and mention the shortcomings of the insurance applicant. You can try to overcome the shortcomings by submiting a fresh application. And in case of approval, you will get the policy papers. Don’t forget to have a good look at the policy documents and exclusion to avoid any surprises during a claim request.

Free-look Period

The initial days of the policy are a cooling-off period in which you can withdraw the policy if you disagree with any policy clause or benefit. This is usually a duration of 15 to 30 days, during which you can get a complete refund of the premium. However, you cannot raise a claim in case of an accident during this period. Also, during the free-look period, the insurer can deduct any expenses incurred on the medical examination of the insured person.

Raising a Claim

If the policyholder contracts any illness resulting in hospitalisation, they can raise a claim under the insurance policy to receive funds incurred on the treatment. You can file a claim through the helpline number provided in the policy papers or through the insurer’s online portals. What makes an insurer the best health insurance provider in India is the wide network of healthcare providers for a cashless claim settlement facility. At a network hospital, you have to provide the policy details, and the insurer will transact directly with the hospital during claim settlement.

In the case of a non-network hospital, you can always file for reimbursement of the medical bills. Every insurer has a common reimbursement form that needs to be filled by the policyholder. Along with the duly filled form, you need to submit all the required documents to ensure the reimbursement request is complete.


The best health insurance in India will always provide more advantages than any other policy. Knowing everything about such policies will help you in choosing the perfect health insurance for yourself or your family. One such leading health insurer, Care Health Insurance, offers extensive coverage of healthcare benefits at competitive prices. Visit their website to know more about the policies in detail.

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