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Nithin Kamath Cautions: Most Indians Just One Hospitalization Away from Bankruptcy
Zerodha co-founder Nithin Kamath has issued a stark warning, stating that most Indians are just “one hospitalization away from bankruptcy.” He emphasized the critical need for comprehensive health insurance to protect against financial disaster.
Challenges in Health Insurance Claims
Kamath pointed out the difficulties in getting insurance claims approved due to several factors. These include the lack of full disclosure of policy exclusions, confusion caused by technical jargon, and claims rejected because of pre-existing conditions. To avoid such issues, Kamath advised Indians to carefully choose insurers with a solid track record of five to ten years and a claim settlement ratio between 80-90%.
Kamath’s Personal Experience
Kamath shared his personal health scare, having suffered a stroke in February. He attributed the stroke to factors like poor sleep, overwork, exhaustion, and the loss of his father. His experience underscores the importance of having a good health insurance plan in place.
Selecting the Right Insurance Provider
Kamath also recommended selecting an insurer with a network of 5,000-8,000 hospitals and an incurred claim ratio between 55-75%. He stressed the importance of these criteria to ensure financial stability during a health crisis.
The Importance of Medical Insurance in India
India faces one of the highest medical inflation rates in Asia, with costs rising by 14% annually. According to the “Health Report of Corporate India 2023” by insurtech company Plum, 71% of workers cover their healthcare expenses out of pocket, while only 15% receive health insurance from their employers. Additionally, a survey by Local Circles, involving 39,000 participants across 302 districts, revealed that 43% struggled to get their insurance claims approved due to issues like policy exclusions, technical jargon, and pre-existing conditions.
