Should I buy health insurance from online aggregators or offline agents?

I want to buy Health Insurance but am not able to decide if I should go for Online Agents
(Coverfox, Policybazaar) or Offline agents. My concern is not just premiums but in case of claim settlement procedure how convenient will these online agents be?
-Vikas

There are various options you have at the time of purchase of a health insurance plan -- directly from the insurer via their webpage, offline through the insurer's agent, or through various aggregator sites such as Policybazaar.com, Coverfox, etc. These aggregators will let you do an overall comparison of features and prices of a particular type of policy across various companies. Though these aggregators help you with the purchase of the policy, the final issuance of the policy will be by the insurance company. Buying online has now become a very simple process. You do not have to go through the hassle of going through an agent, who would have tie-ups with a few insurance companies and may not be able to offer the product that you want. The agent may try pushing a product he is affiliated with. Also, there is complete transparency in the process when you buy online - everything is there in front of you and then you can make a decision.

To make a claim, keep the insurer's toll-free number saved on your mobile phone and of another family member and in your phone diary, so that the claims can be filed quickly when the need arises. Keep the mediclaim card with you as it can be a great help in times of emergency. Keep a copy of all the documents, bills and letters you sent to the insurance company. At the time of claim these aggregators will not play any role. You would need to contact your insurer or their third party administrator (TPA) for the claim and this does not necessarily need an agent's help.

Most health insurance companies have resorted to TPAs to take care of cashless hospitalization of policyholders for quality medical treatment and also for providing assistance at the time of claim settlement. There are also some health insurance providers who do not employ TPAs and manage claims settlement directly in-house.

Online plans are suitable only if you are completely aware of the finer details of the policies and can make the decision on your own. Not only you, but also your family should know the complete details of the plan bought online because in the event of hospitalization, the onus of handling the claim process lies with the family members. If you choose to avoid such hassles, you can compare online and buy offline through an agent who is trustworthy, even though the premium would be a bit on the higher side.

This article was originally published on February 10, 2017.