Zerodha's Nithin Kamath Share Essential Health Insurance Tips; Here's What He Suggests

In his comprehensive guide to selecting insurance policies, Kamath highlights several key features to look for. He advises against opting for policies with a co-pay feature

Nithin Kamath, co-founder of Zerodha, recently shared his insights on health insurance for the average Indian in a social media post X (formerly Twitter). In India, where medical costs can be a heavy financial strain for many, health insurance has become more than just a financial product; hence, it is an essential safeguard for someone, according to Kamath.

Kamath highlighted this point on X, stating, “Most Indians are just 1 hospitalisation away from bankruptcy. A good health insurance plan is mandatory."

Kamath suggested opting for an insurer with a proven track record of at least five years, with a decade being even better. He also recommends that the insurer's three-year average claim settlement ratio be between 80 per cent and 90 per cent.

Additionally, he suggests selecting an insurer with a network of 5,000 to 8,000 hospitals. Kamath further notes that an incurred claim ratio of 55 per cent to 75 per cent is ideal, as it indicates that the insurer can both settle claims efficiently and remain profitable over time.

He also advises Indians to ensure that their insurer maintains a low volume of complaints over a three-year average, as this reflects firm quality control.

In his comprehensive guide to selecting insurance policies, Kamath highlights several key features to look for. He advises against opting for policies with a co-pay feature, explaining that while this may lower premiums initially, it can significantly increase your share of the medical expenses over time.

Kamath also cautions against policies with room-rent restrictions, as exceeding these limits can lead to substantial additional costs. He recommends avoiding policies with disease-specific sub-limits, which cap coverage for certain illnesses and may force you to pay extra out of pocket.

Additionally, he suggests choosing a plan with minimal waiting periods for pre-existing conditions, restoration benefits, and daycare treatments. The policy should also cover pre- and post-hospitalization care, ideally extending to at least 30 days before and 60 days after hospitalisation.

Other vital features Kamath recommends include domiciliary cover (home care), free annual health checkups, loyalty bonuses, wellness discounts, and coverage for alternative medicine.