1. Home
2. Blogs

Which is Better: Government Health Insurance Plans or Private Medical Insurance Policy?

• 
• 
• 
• 0
• 0

Published on February 2, 2022. EST READ TIME: 3 minutes

It is the right of every citizen of this country to get access to affordable and quality healthcare, and for this the Government of India (GoI) has introduced several government health insurance schemes to fulfill different requirements. The health insurance schemes offered by the government include both the Central and State Government initiatives. Both government and private health insurance policies have their unique features and benefits. It adheres to different requirements of the policyholder. Let’s look at how they differ.

Here are some basic differences between government and private medical insurances

USP	GovernmentHealthInsurancePolicy	PrivateHealthInsurancePolicy
Premium	Lower premium	Higher premium
Discount	At a discounted price by government	Competitive pricing
NCB benefit	NCB not available	NCB available
Coverage	Provides coverage with an upper limit	Full coverage on most medical expenses
Sum insured amount	Moderate sum insured amount	Higher sum insured amount subject to payment of higher premium
Customers	These are mostly suited for people in the low-income individuals or families category	Open to everybody

Things to remember before buying a private or a government health insurance plan

Here are some of the factors that you must consider while comparing private and government health insurance schemes.

• Age:

The entry and maximum age for renewal of the policy are important factors to consider before purchasing a medical insurance plan. Plans with lifelong renewability are a much better option.

• Sum insured:

The higher the sum insured the better the coverage you will get. Always go for a plan that offers enough insurance coverage.

• Waiting period:

Opt for a plan with a lesser waiting period as it will come handy during medical emergencies.

• Hospital network:

Always check for the network hospitals available in a medical insurance policy. Opt for a plan which includes network hospitals which are near your residency.

• Specific illness cover:

Based on the individual’s specific health ailments, opt for a plan that covers a specific illness which the individual may require.

• Read the read and conditions:

You must read the terms and conditions before opting for a medical insurance. Understand the inclusions and exclusions to avoid unwanted surprises during claim settlement.

Conclusion

When you are buying a medical insurance, people must understand their health requirements and compare policies available from both government and private insurance companies. They should understand policy clauses and opt for the policy from which they can gain the maximum benefits.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

RELATED ARTICLES

Medical Insurance for Visually Impaired People – Find Out How It Works

Have best medical insurance with Optima Restore

At the age of 30, know how much a medical insurance policy can cost you?

---

• 
• 
• 
•