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Why is Topup/Super Topup cheaper than Base medical insurance?

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15 Dec, 2020 by  Rajat


I have a query regarding medical insurance. Let's assume the 2 plans below.

PlanA: Base medical cover till 50L.

PlanB: Base medical cover till 5L + Super Top up cover from 5-50L.

In both plans, the total cover is same, however the premium of PlanA is much higher than PlanB.

Why is this? If the premium/cost is different, then there must be some other change also like less diseases covered, reduced claims, different rules...What am I missing?

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Health Insurance
Basics of Insurance

2 Answer

21 Dec, 2020

Hello Rajat,

This is a pricing flaw.

The insurer is living with this to attract more customers. This is most likely to be corrected once the claims catchup in the future (say 10 years from now).

We wrote an article on this that should explain the entire concept in detail: How is the 1 Crore health insurance cheaper than 25 lakh cover? (

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21 Dec, 2020
ok. In this case, what is the suggestion? Should I go for PlanA or PlanB?
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22 Dec, 2020

Hello Rajat,

Apologies for the confusion. The earlier response was for some other forum post - which we accidentally posted on this thread :)

It is always better to have one policy - for administration during renewals and claims. However, if the cost saving is compelling, it may make sense to take the mild inconvenience of two plans and save money. Just ensure that the super topup plan does not have any room rent or other limitation + and is bought in the same month when the base policy is being renewed - it shouldn't be a problem.


Team Beshak.

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