Medical Costs in India

Shopping for Medical Insurance in India?

Medical costs may be cheaper than American prices — but for many Indians, medical costs are becoming unaffordable. Medical costs in India may be cheaper compared to the USA, but does that mean they are cheap for the average Indian?

Have you ever wondered how local Indians feel about health costs in India? How does an average middle-class family deal with a medical emergency — for example, when a loved one suffers a heart attack? A patient hospitalised after a heart attack in India may have to cough up about two lakh rupees in medical costs — a conservative figure.

Many hospitals in India are now money-making enterprises. Profit is the main motive behind medical care — not only in India but also in countries like the United States.

I recently had first-hand experience with hospitals in India when a family member had to be admitted. Having lived abroad for over 35 years, I was amazed and saddened by what I saw. Medical costs are becoming a common cause of anxiety — not only for the poor but also for middle-class people in India.

Middle-class families now have no choice but to seek medical insurance to protect themselves. In many cases where people do get medical insurance, they are not well-informed as to what exactly they are covered for, or what amount they would get paid if they require treatment.

What is a health insurance policy?

A health insurance policy is a contract between an insurer (the insurance company) and the person getting the insurance. The insurer agrees to provide specified health insurance at an agreed-upon price the premium. The cost and range of protection provided by the health insurance will depend on the insurance provider and the particular policy purchased.

Shopping for Health Insurance

Health/medical insurance companies — not only in India, but worldwide — are in the business for one purpose: to make money. Don't get fooled into thinking they are there for social reasons. They are selling you a product, and it is up to buyers to ensure they are buying the coverage that suits them.

There is only one piece of advice that may help you get the right health policy for yourself and your family: shop around and compare — not only the price, but the policy documents.

NRIs seeking medical insurance coverage in India — for themselves, for when they relocate to India, or for their parents — should carefully compare the various policies available.

Watch out for procedure-wise caps

Just because a policy offers coverage of, say, Rs. 5 lakh, doesn't mean you will get paid the full amount for any given claim. Policies often limit payments procedure-wise.

Example: Suppose you have a policy with Rs. 5 lakh coverage and undergo a procedure that results in a hospital bill of Rs. 40,000. The procedure performed may have a cap of Rs. 20,000 — leaving you to pay the difference yourself.

Foreign Insurance Companies are better?

There is a myth in India that foreign goods are better. So if you are thinking of purchasing a policy from a foreign company, then be warned that insurance companies providing health - medical insurance in the United States are experts in denying medical claims. It is not an uncommon for patients to die while fighting insurance companies to pay for treatment that insureds feel should be covered under their policies and insurance companies refuse to pay due to technicalities. Most Indian companies offering health insurance are going into partnership with foreign insurance providers to cash in on the Indian market for medical and health insurance.

Should you buy medical - health insurance in India?

The vast majority of Indians still do not have any medical insurance. Health insurance though a common concept in the western countries, has not been a given much thought in India in the past few years. However, now as medical costs soar and become a cause of concern for middle class Indians. Medical insurance is gradually gaining popularity in India. Should you get medical insurance? the answer is a definite yes! However do some research before buying a medical insurance policy. Read and re-read medical insurance policies to get the best coverage. Having a policy that will not offer the coverage you expect is not worth the paper its written on.

Comparing Health Insurance Companies in India →