Health Insurance Claim Settlement Ratio & How is it Calculated?

Are you wondering what health insurance claim settlement ratio is and how it is calculated? Allow us to explain. A Claim Settlement Ratio or a CSR helps you gauge how reliable a health insurance provider is since it proves the percentage of claims the provider settles annually. This means that the higher the ratio, the better the health insurance provider is for you. 

The health insurance claim settlement ratio determines how promptly your insurance provider is, how easily you will be able to access your insurance coverage during an emergency, etc. This is very crucial for when unforeseen events befall you, and financial aid is an urgent and immediate requirement.

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Importance of Health Insurance

In India, where healthcare costs are increasing quite rapidly every year, a health insurance plan becomes an effective equalizer for anybody who doesn’t want to experience the pinch. Without a policy, you would have to suffer silently or settle for poor healthcare options that do more harm than good. So, let’s understand the need and importance of health insurance.

  • Offers Cashless Facility

With health insurance, you can avail a facility termed as a cashless treatment where you do not have to pay anything. Insurance providers have tie-ups with numerous hospitals where the company directly settles the bill and you can rest assured. If you choose to seek treatment at any such network hospital associated with the insurer, you can enjoy a cashless facility.

You can simply show your cashless card to the hospital billing desk and your insurer will take care of the rest. Therefore, health insurance becomes crucial to secure yourself from the increased costs of medical services and healthcare facilities.

  • Provides Enhanced Protection

Sometimes, your base health policy isn’t exhaustive enough to cover all kinds of medical expenses. During such times, health insurance add-on covers can come to your rescue. For example, if a doctor diagnoses you with a critical illness, then the add-on cover shall cover it.

The insurer will pay a pre-decided lump sum amount specified in the policy regardless of the medical expenses incurred. However, such covers are available at an additional cost but are more cost-effective than buying a separate policy. So, you can get enhanced protection from certain predefined aspects in health insurance at an affordable rate.

  • Grants Financial Security

Though financial security for most individuals means having enough savings, health insurance can be a safety net too. In the event of a medical emergency, the healthcare expenses can easily burn through your life savings. To avoid such a situation where you end up dedicating all of your hard-earned money to medical urgencies, a health plan is a must.

You can easily opt for insurance that secures the health needs of your dependents at an affordable premium. If you are worried about the policy going in vain due to zero claims, stop right there! The insurance provider shall offer you a reward for not making any claims during the policy tenure.

  • Tax Benefits

Another pointer that stresses the importance of medical insurance is the tax benefits. Health insurance is an excellent option for saving your money on taxes while enjoying the coverage. You can claim the premium paid towards your and your family’s health policy under Section 80D of the Income Tax Act, 1961.

Furthermore, individuals can claim a deduction of up to ₹25,000 for the premium paid for themselves, their spouse, and their children who are below the age of 60. If the health insurance plan is for your senior citizen parents above 60 years, then a tax deduction is capped at ₹50,000.

Thus, a taxpayer can minimise their tax liability by safeguarding their dependents with health insurance.

  • Customised Insurance Plans

Not every individual has similar insurance requirements and thus, you can choose a health policy from a wide range of plans. From individual and family floater to senior citizen and critical illness policy, health insurance has got you covered.

Moreover, you can select the right policy within your budget and get maximum benefits by comparing plans. Hence, you can go on to personalise insurance policies instead of relying on plans offered by your employer.

  • Protects Against Ailments

With time, lifestyle illnesses have seen a rise due to our sedentary work life and increasing pollution. Though many of us might sit and work for most parts of the day, we also follow a fast-paced lifestyle.

Such ailments begin affecting us later in life, making health insurance a necessity. The cost of treatment and medication for age or lifestyle-related diseases can easily impact your savings. Thus, it is recommended to get coverage now that you know the importance of health insurance.

Over to you!

An emergency can strike at any time and anywhere, which is why health insurance is a necessity for most of us. Moreover, it protects you and your dependents from the soaring healthcare costs, enabling you to put your medical needs first.

So, secure yourself with a health insurance plan by heading over to Finserv MARKETS now! With lucrative add-ons, high coverage and quick claim settlements, you can always rely on us for your insurance requirements.

Best Health Insurance Plans Available at Finserv MARKETS