Narayana Health's Aditi Insurance is offering Rs 1 cr coverage for Rs 10,000: Should I switch to this plan?

We are a middle-class family of four, aged 42, 38, 14, and 11 years. I understand that the Aditi Insurance Plan from Narayana Health offers an attractive premium rate of Rs 10,000 for hospitalization coverage of Rs 1 crore. Should I switch over from my existing policy to this plan?

Reply by S.K. Sethi, Founder & Director, RIA Insurance Brokers Pvt. Ltd.:

Narayana Health has introduced an attractive health insurance policy. The Devi Shetty-led healthcare major offers comprehensive coverage with a sum assured of Rs 1 crore for surgeries and Rs 5 lakh for medical management at Narayana Health network hospitals. This plan aims to bridge the gap in healthcare access for the masses in India by providing extensive coverage at an affordable price. The new insurance can be availed at an annual premium of Rs 10,000. The policy has no waiting period for pre-existing diseases.

However, some terms and conditions of the policy need your attention:

• Treatment in a ward: Is it acceptable to you and your family? Middle-class families are often used to shared or single rooms.
• Daily deduction of Rs 2,000: Assuming a stay of 6 days in the hospital, this will result in a payment of Rs 12,000 by you.
• Compare premiums: You need to compare the premium of your present policy with the Rs 10,000 of this policy to understand the financial implications of the reduced/attractive premium.
• Informing the insurance company: Not informing the insurance company in advance or immediately when admitted to the hospital will result in a co-payment of 10%, meaning you will have to bear it out of your own pocket.
• Treatment in 22 Narayana Health hospitals: Is this a restriction for you? The available documents need clarification that you are eligible for healthcare in 44,000 hospitals located all over India.

Considering these facts and while clarifications like the full policy wording from Narayana Health become available, our sincere advice to you is: “Do not act in a hurry, continue with your present health insurance policy.”