I had bought an indemnity-based health insurance policy from a life insurer in 2009. That was the short period in which life insurers in India were allowed to sell both indemnity-based and benefit-based health insurance products. Later, health insurers were not allowed to sell indemnity-based health insurance.

Health insurance is a long-term insurance. Non-life insurers are used to short-term products. They are not used to long-term products. Naturally, health insurance should be sold by life insurers rather than non-life insurers. For this reason, in most parts of the world, it is Life & Health insurance together.

For reasons only IRDAI can explain, they don’t allow life insurers in India to sell indemnity-based health insurance.

Why am I so happy with my product sold by life insurers?

It is called Health Saver. This product has two components. One component goes to the premium. Another component goes to the investment with an option for me to select the mix of equity and debt.

The amount I pay every year is the same. I have been paying Rs 30000 per year since 2009. Of course, when I was younger, a greater amount went for investment and as I am growing older, a greater amount is going towards the premium.

My fund has been growing over the years which I can use for any health emergencies including for expenses towards my outpatient and diagnostic tests.

The best part of the policy is that I was given a table of exactly how much premium will be charged at different ages (not age bands but exactly at each completed year). This premium cannot be changed by life insurers unless they re-file with IRDAI and get their approval.

2009 to 2022, there was no revision in premium.

2023, I received a letter from the insurer which said:

“Keeping in view the changing health care costs, premium stands revised wef 18 May 2023”.

The best part is I got the revised table along with this letter exactly telling me what the premium for every age will be.

This is called contact certainty.

When I hear from friends how their premium got revised from Rs 67000 to Rs 96000 or from Rs 91000 to Rs 1.3 lakhs, I wonder how unfair their contract is. And feel happy for having bought health insurance from a life insurer.

Is there no negative about your health saver product-you may ask?

This product coverage is only up to the age of 75 years.

I don’t care, because my health saver fund has already grown and will grow much bigger by the time, I reach 75 years. I can use that fund after 75 years (assuming I survive till then).

I have never claimed from this policy so far. So, I cannot comment on the quality of service. There is a general perception that non-life insurers are better at customer service than life insurers. Once I test the service (hoping I will not ever require testing their service), I will make another blog on their claim service.

Time for IRDAI to reconsider its decision not to allow life insurers to sell indemnity-based health insurance products.