Private vs PSU companies for Health Insurance. Which one is better?
Any idea, if private companies are better then PSUs for health insurance? My perception is that claims will be smooth with private companies.
That's a good question that has a complex answer.
Many private insurance companies have a more structured standardized service quality, but often it is not personalized - everything is system driven.
Services with Govt insurance companies are decentralized, less structured/standardized, dependent on who is running the show in the divisional office.
In my experience, the benefit with govt is that once you are able to reach the right person (which is possible if you have a good agent/distributor) the response can be more human and personalized.
The best combination can be:
- Structured/standardized services backed with strong systems and a well trained, humanized customer service (Not available currently) <or>
- A policy with a Govt. insurance company with a strong agent/distributor who is able to consolidate and extract services from them. (Rare)
I think the question is not whether PSUs are better or private insurers are better. The important question is - Who will give better claim recovery to you. Right?
For a better claim recovery, I advise buyers to consider 3 important aspects:
- Who is going to process your claim? I run a company SureClaim and we assist people in their health claims, based on my experience, insurers who process claims in-house deliver better claim experience than those who outsource to TPAs. Doesn't matter whether insurer is PSU or Pvt, sab ek jaise hain.
- Is your insurance plan inflation-efficient? What it means is that since medical cost keeps rising with time, is your insurance plan going to keep up with medical inflation? Factors such as room rent limits, treatment sub-limits etc are critical to watch out .
- How much are you paying for the cover? People just don't look at the No Claim Bonus (NCB) limit of the policy. If there are 2 plans A and B with 10 lakh sum insured and almost similar premium, and A allows maximum 50% NCB and B allows max 100% NCB aggregation, then plan B is better than A because for same premium plan B offers you 20 lakh cover while plan A offers just 15 lakhs cover.
I hope this gives you more clarity. If you have any specific doubts, I am happy to answer them if you write to email@example.com