Is health insurance a ‘hoax’? Do companies lie a lot about this?
This is a fascinating question that deserves to be answered completely, otherwise, what will happen to the insurance industry? Now the question is, is health insurance a hoax? “It may be for some and not for others” I have always believed that as important as any service or item is, buying it is important but most importantly how it works.
The insurance business is a risk business that works on a pool that the company insures 100 people. There is a possibility that the number of claims received will be less than the total premium collected so that the company also benefits, be it the insurance industry or anyone else. A profit-making organization will not be engaged in social service that comes we will close our eyes and give you the claim. This does not happen at all. According to the research of the Insurance Institute of India, about 15% of insurance claims are fake.
Now coming to health insurance companies, do they lie? I would like to present some facts and then you decide whether health insurance is a fraud Or is the need these days like food, clothing and shelter.
See the data of claims given by health insurance companies in the last few years which has been published by IRDA (Insurance Regulatory)
Claims paid by General and Standalone Health Insurance Companies for Health Insurance claims:-
| Years | Claims Paid in Cr (INR) |
| 2013-2014 | 14007 Crore |
| 2014-2015 | 17315 Crore |
| 2015-2016 | 20900 Crore |
| 2016-2017 | 26089 Crore |
| 2017-2018 | 26047 Crore |
| 2018-2019 | 30027 Crore |
| 2019-2020 | 34058 Crore |
| 2020-2021 | 40718 Crore |
| 2021-2022 | 63361 Crore |
This data has not been given by any health insurance company, insurance regulator IRDA has given it on its official site, now the answer to the question has been found what is the power of health insurance that is saving many families from becoming poor?
You can see for yourself here that claims are increasing at a rate of three times every year, and you can also see what is the condition of medical inflation. How costly is the entire Healthcare Eco-System becoming?
And every 5-7 years some pandemic appears and then it is very rare that health insurance is a must.
