Nithin Kamath, co-founder and CEO of Zerodha, took to X, formally known as Twitter, to emphasise the need for Indians to secure comprehensive health insurance for themselves and their families. Kamath pointed out that merely possessing insurance is insufficient, as insurance companies often employ various tactics to avoid paying the full sum and even reject claims entirely.

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Having adequate health insurance for yourself and your family is the most important financial investment you can make. Most Indians are just one serious health incident away from financial ruin.

But having insurance alone isn't enough. Just because you have insurance doesn't…— Nithin Kamath (@Nithin0dha) November 1, 2023

He underscored the importance of being well-prepared for potential health-related financial burdens and encouraged individuals to educate themselves about common reasons behind claim rejections and how to address them.

This isn't the first time that Kamath has stressed the importance of health insurance. In March, he said that purchasing a health insurance plan is the most crucial financial investment one can make for their family and that this investment should be made even before embarking on one's financial journey.

Kamath shared data indicating the average cost of in-patient care per hospitalisation in urban and rural areas as of 2014. He highlighted that over 6.3 crore Indians face poverty every year due to health-related expenses and cited research indicating that about 8-9% of Indian households fall below the poverty line due to healthcare costs.

Kamath concluded his Twitter thread by asserting that healthcare costs will continue to rise, and the only way to cope with this reality is to raise awareness about the importance of health insurance for all Indian households.

This time, to assist individuals in navigating the intricacies of insurance claims, Kamath shared a link to the post written by Shrehith Karkera, one of the founders of Ditto Insurance, explaining the common reasons why claims get rejected and what should policyholders do. Notably, Ditto Insurance is a Zerodha-backed insurtech startup.

It's important to note that purchasing health insurance is crucial, regardless of one's age, given the uncertainties of times. People often underestimate the value of getting insured at a young age, thinking it becomes valuable only later in life. However, unforeseen circumstances can strike at any point, and the amount of insurance needed depends on factors, including age, income, expenses, debts, dependents, location, health status, lifestyle, and budget.

At times, claim rejections can be distressing. However, the aggrieved do have avenues to raise complaints and make their voice heard.

In health insurance, 24-hour hospitalisation is typically considered a fundamental requirement for coverage. However, there are exceptions known as day-care treatments, offering coverage for medical procedures that do not require an extended hospital stay.

Here's a look at claim settlement ratio of some of the health insurance firms:

(Source: Policybazaar)

Notably, an insurance company's claim settlement ratio (CSR) refers to the number of claims successfully resolved versus the number of requests received in a given year.

(Edited by : Amrita)

First Published:Nov 3, 2023 2:07 PM IST