Seven health insurance myths shattered 

People don't buy health plans readily possibly due to several misconceptions about them, as is evident from a survey by ICICI Lombard. ET looks at the most glaring myths and the reality behind them.

1.   Health insurance policies pay only in case of hospitalization

Myth
52% respondents believe health insurance pays only for hospitalisation.

REALITY
22 companies offer day-care treatment cover. Nine out of 22 non-life insurers offer OPD benefits, which include:

* Specialist consultation
* Dental treatment
* Diagnostic test expenses
* Vaccinations
* Alternative medicines
* Hearing aid
* Eye check-up, spectacles, contact lenses
* Preventive and wellness services

2. Pre-existing diseases will be covered after a waiting period. No need to declare it.

MYTH
Only 33% respondents believe that existing diseases must be declared.
REALITY
All pre-existing diseases have to be declared upfront at the time of buying the policy.

What Irda says about pre-existing diseases:

* Any condition, ailment, injury or related conditions for which you had symptoms and/or received medical advice/treatment within 48 months of buying the policy.
* An ailment regularly treated and under control falls in the definition of preexisting disease.
*Any such condition or ailment not declared by a customer is considered an undisclosed pre-existing disease and leads to claim rejection.

3. I don't need health insurance if I am fit.

MYTH
27% respondents said they don't need health insurance because they were fit.
REALITY
* Health insurance covers injuries due to accident or violence.
* Many illnesses (dengue, malaria, food poisoning) can strike even healthy people.
* Incidence of critical illness in the 26-35 year age group grew by 124% in 2012-13.

4. I have group health cover so don't need a separate policy.

MYTH
29% believe employer sponsored health insurance is enough.
REALITY
* The group health policies have defined limits.
* 12% of corporate claims for critical illnesses in 2013 were for more than Rs 2 lakh.
* Claim size is rising for diseases, group cover may not be enough.

5. One should choose a health policy on the basis of premium.

MYTH
30% of respondents consider only the premium while buying health insurance.
REALITY
Health policies have different features, so premium can't be the only factor.
Premium depends on the features of the policy and age of the person. Features that impact the premium:

* Co-payment
* Deductible
* Sub-limits

6. I will not get health cover need to declare it. because I smoke/drink alcohol.

Myth
49% of the respondents who smoked or consumed alcohol were not sure if they would get health insurance.
REALITY
Insurance companies offer policies to people who use tobacco or consume alcohol.

Though such cases are not outrightly rejected, the premium could be more given the higher risk.

7. Only the earning member of the family needs health insurance

MYTH
26% of respondents do not intend to insure their family.
REALITY
* Unlike life insurance, health insurance should cover the entire family, including children and parents of the customer.
* Claims data reveals that two out of three claims are of medical expenses on dependants.

The online survey carried out by ICICI Lombard covered 1,005 respondents. As many as 68% of the respondents were below 25 years, 26% were between 25-40 years and 6% were above 40 years of age. Only 46% of the respondents had health insurance 

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