According to a recent study by Policybazaar, half of the country's health insurance buyers are choosing the 'Sum Insured Bonus Rider' offering reward benefits despite claims.
Policyholders are opting for rider upgrades in their health insurance plans, with ‘Sum Insured Bonus’ being the most popular at 50 per cent. Other common upgrades include consumables (30 per cent), day one pre-existing disease (PED) coverage (20 per cent), room rent waiver (18 per cent), and critical illness (13 per cent), according to Policybazaar study.
Policyholders aged 31 to 40 show the highest proportion (28 per cent) prioritizing upgrading riders or attachments, with those aged 51 to 60 following closely behind at 21 per cent. Moreover, the percentage of policyholders opting for riders in health insurance has significantly increased from 15 per cent in FY23 to 60 per cent in FY24.
By opting for certain riders into their policies, individuals are seeking to enhance their coverage without necessarily increasing their premiums.
Insights from the data reveal that the majority of policyholders (86 per cent) opt for a sum insured of 25 lakhs or below, indicating a preference for more affordable yet comprehensive coverage options.
Policyholders who have added riders tend to file claims most commonly for Infections, which make up 30 per cent of claim submissions. Eye treatments constitute 16 per cent of claims, while digestive, genitourinary, and respiratory issues each account for 12 per cent of claims respectively. The given data is for health insurance policies sold in FY24.
Factors Driving People To Modify Health Insurance Policy: India, being a youthful nation, has consumers now demanding greater coverage from their health insurance plans. Previously, health insurance primarily focused on in-patient hospitalization, but consumers now expect coverage for other related expenses such as outpatient care, maternity, and global coverage.
“More Indians are now taking an active interest in keeping themselves physically fit and expect their health insurance to reward them for not claiming. This is done in the form of a ‘No Claim Bonus’ (NCB) and Wellness points. Many earlier plans imposed mandatory sub-limits, including room rent capping, co-payment, and disease-specific sub-limits. With a wider array of treatment options available, most customers prefer plans without limitations that hinder their ability to access the healthcare services of their choice,” Siddharth Singhal, business head - health insurance, Policybazaar.com said. NCB, also known as cumulative bonus is a reward for every claim-free year given by the insurer to you. You can benefit from this bonus by increasing your sum insured on health insurance or by getting a discount on premiums.
Moreover, riders offer additional benefits beyond the standard coverage provided by the base health insurance plan. By choosing riders, policyholders can enhance their coverage without necessarily increasing their premiums. Riders help in ensuring that policyholders are adequately prepared for unexpected medical expenses or emergencies.
“The ‘Sum Insured Bonus Rider’ stands out as the most favoured option among policyholders due to its attractive benefits and incentives. It protects your accumulated no-claim bonus amount even if you file a claim during the policy period. You just need to pay an extra cost for purchasing this rider and you can enjoy its several benefits. This turns out to be financially advantageous and gives you value for your money,” Singhal added.
