• Payment of Health Insurance Premium in Installments

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    In a regulatory move, to make all ends meet IRDAI (Insurance Regulatory Development Authority of India), now allows the health insurance providing companies in India to accept monthly premiums for their health insurance policy. Earlier people had to pay a one-time premium unless the policy was to be renewed. This led many, including the IRDAI to believe that perhaps it was necessary that monthly installments was necessary to be introduced in the system.

    Why Has the Provision been Introduced?

    As per the Annual Report released by IRDAI for FY-2014-15 the general insurance industry has witnessed the issuance of approximately 1,09,00,000 health insurance policies. These policies are supposed to cover 28.80 crore people as policyholders. The data further showed that there is a major number of people who are covered by government schemes as well as group insurance policies, while the individual health insurance business has fallen marginally.

    The main idea behind this regulatory move is as simple as it seems: making health insurance a more affordable product so that people who were unable to pay lump sums earlier may now be able to afford medical insurance. The other options also include payment of premiums on monthly, quarterly or half yearly as well as the currently in practice annual basis of instalments. Insurance policies which have higher amounts of sum assured earlier had multiple annual premiums to be paid for coverage. But is this move a great move or just not quite what it seems?

    Pros of Being Able to Pay Monthly Installments for Health Insurance Policy:

    We often come with the precarious idea that every move made by the IRDAI has got to benefit ordinary masses. It sure is intended to, which is why it generally works out. Here are some of the reasons why this new idea could actually help the health insurance sector grow and benefit the product consumer base at the same time:

    • More accessibility of the product in small towns and rural areas of the country is something that people can expect from this move because the investment for health will get a lot cheaper this way. As it based on the reports by NSSO (National Sample Survey Office) rural population in India whose health has been insured is only 14.1%.
    • It is not any better in the urban areas since NSSO’s numbers for the statistics for urban regions in India is a mere 18%. This means that there is still a huge opportunity for the health insurance industry to grow in the cities as well.
    • With the advent of internet, making payments online has also become easier with higher penetration of the medium in made remote places. This was not the case even a decade back. Internet has evolved to a state today where it is no longer a luxury or want but a poor necessity and hence paying premium installments will not be a cumbersome job for people anymore.
    • With premium installments, people can now opt for different policies or change it in the future, when they are able to afford higher sum assured.
    • In fact, people who have policies currently that barely cover their health expenses will now be able to afford higher coverage, since they will have a higher buying power with lower premiums having to being paid.
    • If the health insurance industry experiences a boon through this move, then it will automatically offer more competitive products. This will improve everything the industry, starting with the basic customer service and an enhanced claim process.

    What Could Go Wrong When Paying Monthly Installments for Health Insurance Policy?

    Though this list is smaller and may not be too important to some, is still essential to be aware of, especially for people to know what they are getting into:

    • Not only for health insurance, but if you come to think of any other product, even if it is buying a cell phone with EMI, installments always make the actual cost of the product much higher. The policyholder in such cases ends up paying approximately 3 to 5 percent more which is a big amount if you consider the sum assured. The quarterly premium rates will be around 3% higher while the monthly premiums will make the product 5% more expensive.
    • Also people will have to opt for an insurance which is at least requires 2 to 3 years of policy term.
    • To add more oil to the fire, people cannot claim the insurance money before at least a year of premiums have been paid. This was not the case with annual premiums being paid earlier.

    However, all parties in question are positive about this move because of the major affordability factor and maybe this general insurance will actually be more accessible to lower income groups now.

    GST rate of 18% applicable for all financial services effective July 1, 2017.

    Disclaimer: Premiums may vary depending upon factors like age, location and prevailing taxes/GST.

    Payment of Health Insurance Premium in Installments Reviews

  • Page 1 of 50 1 2 3 4 5
    • National Insurance Health Insurance
      "Its good health coverage policy"
      0.5 5.0/5 "Blown Away!"
      National has good hospital facility, they are recommending high profile hospitals with cash less treatment. I make premium around Rs. 4500 per year. Its covers only for me. Medical sum assured Rs. 1.5 lakh, I hope they are providing pre existing disease as well.
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 20, 2018
    • Max Bupa Health Insurance
      "Good Protection for Health"
      0.5 4.0/5 "Great!"
      Max Bupa gives the medical cover around Rs. 2 lakhs its covers only for me. I paid around Rs. 2500 as premium amount for one year. They do have tie up with good hospital. I hope Max Bupa is providing tax benefits and no claim bonus on the health policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • Religare Health Insurance
      "Its Good"
      0.5 4.0/5 "Great!"
      RBL gave me the Health insurance from Religare , without my knowledge they have charged me Rs. 3000 of premium, for the tenure of one year. Religare premium was converted into EMI. Religare gave me the medical cover around Rs. 1.5 lakh with cash less treatment facility and they got tie up around 1000 hospital in India.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • Royal Sundaram Health Insurance
      "Best insurance policy"
      0.5 5.0/5 "Blown Away!"
      I have taken Health Insurance with Royal sundaram.The premium amount is is 2500,the policy coverage is five lakhs,24 hours hospitalization. for any kind of claims.The payments is done online.I have no claim experience and cashless treatment is covered 95%.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 20, 2018
    • Bajaj Allianz Health Insurance
      "Best insurance policy"
      0.5 5.0/5 "Blown Away!"
      I have taken Health insurance with Bajaj allianz,the premium amount is not paid my me as its offered by the company.The policy coverage is six lakhs including the family members.This is covered mediclaim as well as health insurance.The policy was taken two years back and no claim experience.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 20, 2018
    • Royal Sundaram Health Insurance
      "Average service"
      0.5 1.0/5 "Really Bad"
      I have taken Royal Sundaram Health Insurance policy,i purchased two months ago,the premium amount is is 6000 paid per annum,I dint receive the kit as yet.The policy coverage is three lakhs and they would cover 100% cashless treatment.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2018
    • Bajaj Allianz Health Insurance
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken a Health Insurance with Bajaj Allianz ,the premium amount is 12,000, its a one time payment.They cover including the dependants the policy coverage amount is five lakhs ,they give 100% for cashless treatment.I pay my premium with my EMI card of bajaj allianz.
      Was this review helpful? 0
      , jaipur
      Reviewed on Feb 15, 2018
    • ICICI Lombard Health Insurance
      "Better service"
      0.5 4.0/5 "Great!"
      I have taken a Health Insurance with ICICI Lombard,the premium amount is 10800 its a one time payment.They cover including the dependants 40% and for the primary holder its 60%they give 100% for cashless treatment.I would say its the best for an individual take a policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 15, 2018
    • Religare Health Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I hold a health insurance with Religare from last 2 years and it is a good insurance policy. This policy has to be renewed every year and i pay a premium of Rs 11000 for this insurance. I do not have claim experience and i have not taken any cashless treatment. I have a coverage of Rs 5 lakhs which is satisfactory.
      Was this review helpful? 0
      , faridabad
      Reviewed on Feb 14, 2018
    • HDFC Ergo Health Insurance
      "Fantastic"
      0.5 5.0/5 "Blown Away!"
      Taken a medical insurance policy with HDFC ERGO GENERAL INSURANCE. Still now I have not taken any claim with my medical insurance. The plan and benefits are really good. I have been paying a premium of rs 5,000 per year. The customer service and response is good.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Feb 14, 2018
    • National Insurance Health Insurance
      "Good policy to use"
      0.5 5.0/5 "Blown Away!"
      I have a health insurance with national insurance from last 2 months and it is a good insurance policy. I pay a premium of Rs 170 on monthly basis. I do not have claim experience so far and i have not taken any cashless treatment. I have a coverage of Rs 3 lakhs which is satisfactory.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 13, 2018
    • Royal Sundaram Health Insurance
      "Health insurance with ROYAL SUNDARAM"
      0.5 3.0/5 "Satisfactory"
      From ROYAL SUNDARAM GENERAL INSURANCE i have taken a health insurance policy and the premium amount is 7000. This policy covers my whole family. They provide cashless treatment facility.I make my payment through cheque. The customer service is good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 13, 2018
    • HDFC Ergo Health Insurance
      "Good insurance"
      0.5 5.0/5 "Blown Away!"
      I have taken a Health insurance with HDFC Ergo,The premium amount is 17,000 including family members.The insurance is active since 2014. They promised to cover 100% cashless treatment till date i have no experience for the same.The payment is don't through Auto debit from credit card.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 13, 2018
    • HDFC Ergo Health Insurance
      "Best policy to use"
      0.5 5.0/5 "Blown Away!"
      I hold a health insurance with HDFC ERGO from last 7-8 years and it is a good insurance policy to use. This policy has to be renewed every year and i pay a premium of Rs 15000 for this insurance. I have taken a cashless treatment and my claim experience was very good with this insurance. I have a coverage of Rs 3 lakhs which is satisfactory.
      Was this review helpful? 0
      , pune
      Reviewed on Feb 13, 2018
    • review Health Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I hold a health insurance with Birla General insurance from last 6-7 years and it is one of the good insurance policy to use. This policy has to be renewed once in 3 years and i pay a premium of Rs 3500. I do not have claim experience so far with this insurance and i have not taken any cashless treatment. I have a coverage of Rs 3 lakhs which is satisfactory.
      Was this review helpful? 0
      , panipat
      Reviewed on Feb 12, 2018
    • HDFC Ergo Health Insurance
      "Good insurance policy"
      0.5 4.0/5 "Great!"
      I hold a health insurance policy with HDFC ERGO from last 5-6 years and it is one of the good insurance policy to use. I pay a premium of Rs 202 every month for this insurance. I have not taken any cashless treatment and i do not have claim experience so far. I have a health coverage of Rs 5 lakhs and the accidental coverage of Rs 15 lakhs which is satisfactory.
      Was this review helpful? 0
      , surat
      Reviewed on Feb 12, 2018
    • Reliance General Health Insurance
      "Good insurance policy"
      0.5 4.0/5 "Great!"
      I am having a health insurance policy with Reliance general from last 7 years and it is a good insurance policy to use.This policy has to be renewed every year and i pay a premium of Rs 12000-13000 for this insurance. I have not taken any cashless treatment and i do not have claim experience with this insurance. I have a coverage of Rs 6 lakhs which is satisfactory.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 12, 2018
    • HDFC Ergo Health Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I had a Health Insurance in HDFC ERGO GENERAL INSURANCE. I got extra ordinary benefits in single policy. I will get regular alerts regarding policy premium. The customer care is also good and well responsive. They intimates my policy renewal date to renew the policy on time.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 12, 2018
    • HDFC Ergo Health Insurance
      "Excellent insurance "
      0.5 5.0/5 "Blown Away!"
      I have taken Health Insurance with HDFC Ergo,the premium amount is 1153,The policy coverage amount is three lakhs including family members.I have no claim experience as its taken six months ago.The process is too simple, and easy they had finished within a day.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 10, 2018
    • Apollo Munich Health Insurance
      "Best insurance policy"
      0.5 5.0/5 "Blown Away!"
      I have taken this policy last three years ago.The premium amount is 10600 paid through Kotak bank credit card.This policy was taken 30 days ago.I have no claim experience till date.This policy is covered including the family members is three lakhs.
      Was this review helpful? 0
      , jaipur
      Reviewed on Feb 10, 2018
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