A recent experience of an Indian consumer shopping for health insurance has highlighted a clear pricing trend and raised important questions about value. The individual, who requested anonymity, obtained quotes from multiple channels: an agent, directly from an insurer's website, and via a broker. The findings were revealing: purchasing directly from the insurer's portal offered a clear cost advantage, while broker and agent quotes showed no price difference.
The Direct Discount: Why Insurers Offer Cheaper Online Rates
According to Abhishek Bondia, co-founder of SecureNow, this pricing structure is by design. Insurance regulators typically mandate non-discriminatory pricing across traditional distribution channels. This means for the exact same health insurance product configuration, the price should be uniform whether you buy it through an agent, a broker, or a bank.
However, insurers are permitted to offer a discount for policies sourced directly through their official websites. This discount essentially reflects the cost saved on intermediary services. When you buy online without guidance, the insurer bypasses the commission or fees that would otherwise be paid to an agent or broker.
What Do You Lose or Gain by Going Direct?
The key question is whether the discount is worth forgoing intermediary support. Bondia explains that a good agent or broker provides value across three critical areas:
- Policy Placement: They help compare options, explain complex benefits and exclusions, tailor the product to your needs, and assist with medical tests and documentation.
- Claims Assistance: This is often the most crucial service. Intermediaries provide handholding during claims, especially in tricky cases involving denials, deductions, or reimbursement procedures.
- Policy Servicing: They manage administrative tasks over time, such as adding dependants, updating addresses, or restructuring coverage.
A reliable intermediary with a dedicated claims team and strong insurer relationships can be invaluable. If you are confident in navigating the entire insurance journey yourself or have family support, the direct purchase route makes financial sense. Otherwise, the long-term value of an expert might outweigh the upfront discount.
The Super Top-Up Mystery: High Cover, Low Cost, Low Awareness
The same consumer also inquired about super top-up health insurance plans, having found an offer for a massive ₹5 crore sum insured for a premium under ₹1,000. This plan came with a deductible (or threshold) of ₹20 lakh, which would be covered by their existing base health policy. Skeptical of the seemingly unbelievable value, they asked why such products aren't more popular.
Abhishek Bondia clarifies that super top-up plans are indeed useful and priced very reasonably. They are an excellent and affordable method to significantly enhance one's overall health insurance safety net. The primary reason for their limited adoption is a simple lack of awareness among the public. He expects word of mouth to gradually improve their uptake.
Another significant barrier is distribution economics. Given the low premium amount (often under ₹1,000), the relative cost for an agent or broker to sell and service this product is high. Consequently, only a limited number of intermediaries actively promote super top-up health insurance, creating a visibility gap in the market.
In conclusion, the Indian health insurance buyer faces a clear trade-off: cost savings through direct online purchase versus the potential for expert guidance and support through an intermediary. Meanwhile, highly cost-effective products like super top-up plans remain underutilized, waiting for greater consumer education and innovative distribution models to bridge the awareness gap.
