Tips for buying health insurance and how to make it inflation proof

by inshol IST (updated)


The costs of treating critical illnesses have risen dramatically over the years and adequate protection is needed to ensure that there is no undue financial stress on the family in the event of an unexpected hospitalization.

Medical inflation has risen sharply in India, particularly since the outbreak of COVID-19, and thus has had a ripple effect on hospitalization costs and medical claim insurance premiums. In fact, medical inflation – 14 percent in India last year according to some studies – is higher than many Asian countries such as China and the Philippines. Medical inflation can affect the financial resources of individuals as well as families, especially if the person is admitted to the hospital without a health insurance policy.

Health insurance premiums increase or decrease depending on the policyholder’s claims ratio, which has been weak in the past two years, that is, the claims settlement ratio of policyholders is low. Going forward, it may not be mitigated instead and medical costs will rise due to inflation in the healthcare sector, the experts said, while also adding that this will translate into another increase in premium costs.

hGetting a health insurance policy is a basic and basic need for every individual. However, one needs to plan it in such a way that it helps in coping with inflation and can handle any medical emergency without making a hole in your pocket.

Here are some of the practices and rules to follow to buy an inflation-resistant health insurance policy:

Buy a suitable cover

Rakesh Goyal, director of Probus Insurance Broker, said policyholders should buy adequate health insurance coverage and not just look at higher premiums.

“They should include every family member in the policy. If someone has health coverage from their company, we suggest they take personal cover so that the higher medical bills can be taken care of,” Goyal said.

Indraneel Chatterjee – Co-Founder – RenewBuy also advises policyholders to invest a significant portion of the money in insurance. People should plan health insurance, according to the medical needs and requirements of their family.

“Medical history is an important aspect to consider. In the event that consumers already have medical insurance, they should go through the renewal period and renew their documents from time to time,” he said.

buy early

One of the best ways to beat the costs of medical inflation is to start as early as possible in terms of age as with healthy living, there are better chances of getting higher value coverage, said Apaar Kasliwal, CEO of

While comparing health insurance covers, insurance companies should keep in mind room rent restrictions, consumables coverage and the cashless hospital network you choose in the vicinity.

Choose NCB

Another important consideration is choosing plans that offer higher NCB benefits. There are some coverages that offer an increase in the basis of the coverage value of the National Commercial Bank and therefore with each successive no-claim year (25 percent of the National Commercial Bank in the first year reaches a maximum of 100 percent in 2-4 years), the individual can enhance the value of the coverage at no cost additional. This is a great way to boost your coverage and thus keep medical inflation costs under control over time . Castlewall said

No Claim Bonus (NCB) is a monetary award for not making a claim in a given year. It usually takes the form of additional coverage that exceeds the sum insured under the basic policy.

Go for super packing plans

Existing policyholders should consider enhancing the value of cover by opting for super increment plans, thus beating inflation. This way, one can ensure significant risk protection at relatively low costs, according to Cassewal.

Super Top plans consider the total of all bills submitted, regardless of whether they pertain to one or several illnesses. These plans can be renewed annually.

Note to readers

The opinions and investment advice expressed by investment experts on are their own and are not those of the website or its management. advises users to consult certified experts before making any investment decisions.

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