Consumer Struggles in Health Insurance Claims
A recent survey conducted by LocalCircles sheds light on the challenges faced by consumers in processing health insurance claims. According to the survey, a significant 43% of insurance policyholders encountered difficulties in processing their health insurance claims over the past three years. The survey highlights various issues ranging from claim rejections to delays in claim approvals, raising concerns about the efficiency and transparency of the health insurance system.
Time-consuming Claim Approval Process
One of the key findings of the survey is the time-consuming nature of the health insurance claim approval process. Many policyholders reported spending hours trying to get their claims processed, with some even facing delays of 10-12 hours after the patient was ready for discharge. This prolonged process not only adds to the stress of the patients and their families but also increases the financial burden, as any additional nights spent at the hospital waiting for claim approval have to be borne by the patients themselves.
Struggles Despite Pre-Approval
Interestingly, even in cases where the insurance company provides pre-approval to the hospital’s TPA desk before the admission of the patient, delays in claim processing are still encountered. This highlights the inefficiencies in the existing claim processing system, despite prior authorization from the insurance provider.
Continued Consumer Challenges
Despite interventions by regulatory authorities like the Insurance Regulatory and Development Authority of India (Irdai), consumers continue to face challenges in dealing with insurance companies to get their health claims processed. The survey reveals that rejection of health insurance claims, including policy cancellations by insurance companies, remains a top concern among consumers.
Need for Transparency and Accountability
To address these issues, consumers advocate for greater transparency and accountability from insurance companies. The survey indicates overwhelming support (93%) for Irdai to mandate insurance companies to disclose details of claims received, rejected, and policies approved and canceled on their websites each month. Such disclosures are seen as a means to improve transparency and discourage arbitrary policy cancellations by insurance providers.
Concerns Raised by Policyholders
Policyholders have raised several concerns regarding their health insurance policies, including:
- Lack of full disclosure about exclusions and eligibility for claims
- Ambiguity in contracts due to technical jargon and complex language
- Rejection of claims due to pre-existing diseases
- Issues with eligibility criteria beyond pre-existing diseases
- Challenges related to crop insurance rules tied to the scheme
Agent Involvement and Commission Structure
Another concern highlighted by the Consumer Affairs Department is the lack of interest shown by agents in guiding or assisting policyholders after selling policies. This apathy is attributed to the front-loaded commission structure, which incentivizes agents to focus solely on policy sales rather than post-sales service and support.
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