When Ajoy Mitra (name changed on request), a graphic designer, took his wife to one of Delhi’s leading hospitals to be treated for a suspected case of dengue, he had not bargained for what happened. Despite the insurance cover, he was asked to pay up Rs 10,000 first. Worse followed. The third party administrator (TPA) would sanction an initial expense limit of only Rs 10,000 though he had a cover worth Rs 2 lakh. Only after spending a lot of time — precious time that he should have spent attending to his wife — could he get the limit hiked.

Horror stories pertaining to health insurance abound. This makes it all the more imperative that you exercise immense caution at the time of purchase.

•At what stage of life should you buy health insurance?

The earlier, the better. As soon as you start working, buy a health cover for yourself. Later, when you have a family, get a cover for it too. According to Alda Dhingra, vice president, Prudent Insurance Brokers, “Don’t wait until you are 35 or 40. Insurers don’t want to accept you at a higher age. They ask you to go for a medical checkup and if anything is discovered they deny coverage.”

If your company offers a group health insurance cover, sign up for it. However, do not depend on it alone. Buy an individual cover as well. What if you are fired tomorrow or your company goes bankrupt? “During this recession a lot of people have lost their jobs. They are in their 40s and are finding it difficult to get an individual cover. Their parents were also covered under their employer’s group plan. Now they too have no cover,” says Dhingra.

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