Tata AIG Health Insurance vs. LIC Health Insurance

Tata AIG vs. LIC Health Insurance

In our busy lives, there is always a probability of unexpectedly becoming sick and requiring expensive treatments. There is always a slight chance that someone dear to us might be at the mercy of a chronic condition that requires long-term care. Fortunately, there is health insurance. It ensures that undergoing long-term treatment does not throw a family into dire financial straits. By paying a small amount of premium to the insurer, one can take cover under a comprehensive health insurance plan. 

When it comes to health insurance policies, Tata AIG and Life Insurance Corporation of India, these two health insurers have to be mentioned as they have been serving customers faithfully for a long period of time. Their health policies will shield the savings from sudden shocks of medical treatments. In this way, these two insurers act as a protective cover for both savings and healthcare so that you and your beloved family can continue to enjoy their life.

Know about Tata AIG Health Insurance

Tata AIG General Insurance Company Limited is a joint venture between the Tata Group and the American International Group (AIG). Tata AIG General Insurance Company Limited celebrated 21 years of service as of 2021 since it commenced operations on January 22, 2001. The company has made a mark in the industry by launching several innovative products and services over the years, including health insurance products. One can rely on their health insurance plans as they are specifically made, keeping in mind the needs of the policy-seekers. their paperless policies, a wide number of network hospitals (more than 8000) have made their policies popular. Once one buys a Tata AIG medical policy, he/she is entitled to avail of the tax exemption benefit under 80D of the Income Tax Act.

Understand LIC Health Insurance

Life Insurance in its modern form came to India from England in the year 1818. Life Insurance Corporation continues to be the dominant life and health insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. It has very few health insurance products, but still, those policies seem to rule in the health insurance market due to the company’s wide network, super-speciality 24×7 customer service, and the customer-friendly nature of the products. the company keeps on evolving the medical policies keeping in mind the ever-changing demands of the customers.

Major Features & Benefits of Tata AIG Health Insurance

The major benefits of availing of health insurance from the company are as follows. 

Covid-19 Cover:

Tata AIC Health insurance plans come up with in-built COVID-19 cover.

Cashless Facility:

With the company’s network of 8,000+ hospitals across the nation, one can access cashless treatment without having to file a health insurance claim and wait for the reimbursement of the medical bills.

Pre and post-hospitalization Expenses:

Once you are insured under the Tata AIG MediCare and MediCare Protect Health Insurance Plans, your predetermined sum insured covers the medical bills generated 30 to 60 days before your hospitalization and 60 to 90 days following your discharge from the hospital. 

Provides the Option of Additional Sum Insured

One of the most important health insurance benefits of a Tata AIG health insurance plan is that one can earn a cumulative ‘No-claim Bonus’ for every claim-free year, which entails an enhancement in the sum insured under the health insurance plan without any corresponding rise in the health insurance premium.

Round-the-clock Assistance:

The company has made it their mission to anticipate every need of the customers. It offers 24×7 customer assistance, so even if one calls the company in the middle of the night with an emergency, the company will be there for you.

Discounts:

By buying a Tata AIG health insurance policy, not only does one get extensive health insurance coverage from one of India’s most trusted brands but also receives incredible discounts. If one buys the MediCare or MediCare Protect health insurance plans for a tenure of two years, he/she can get a 5% discount on the premium. Similarly, if you opt for a three-year Tata AIG MediCare or MediCare Protect health insurance plan, you can benefit from a 10% discount on the cost of the policy.

Save on Taxes:

TATA AIG health insurance policies are exempted from taxes under Section 80D of the Income Tax Act. If one has bought a health insurance plan for oneself, spouse, or kids, he/she can claim up to INR 25,000 per year.

Substantial Cumulative Bonus for Claim:

Free Years – For every policy year that does not include a health insurance claim, one can receive a cumulative bonus between 10 to 100 percent on the sum insured, depending on the plan that the customer has selected.

What Are The Key Highlights of LIC Health Insurance?

This company has come up with a lot of benefits for those who are looking for good health insurance products. some of the mentions are as follows.

Online Facility:

One can buy, pay a premium, and make minor changes to his/her health product by visiting the online customer portal of the Corporation. 

Wide Network Service:

The company has been in existence for over a century. It has established its strong network roots all over the country. 

Health Card:

LIC offers health cards to insured persons, which helps them to avail of health insurance benefits very easily.

Ambulance Benefit:

In the event that a Major Surgical Benefit is payable and emergency transportation costs by an ambulance have been incurred, an additional lump sum of Rs. 1,000 will be payable in lieu of ambulance expenses.

Medical Management Benefit:

In the event of an Insured undergoing inpatient hospitalization due to the following major medical conditions, a lump sum of 2.5 times of Applicable Daily Benefit shall be payable regardless of the actual cost incurred – a. Dengue, b. Malaria, c. Pneumonia, d. Pulmonary Tuberculosis, and e. Viral Hepatitis A

Early-Stage Cancer:

Benefits payable on the first diagnosis of any one of the specified Early-Stage Cancers, provided the same is admissible, are –

  • Lump sum benefit: 25% of Applicable Sum Insured shall be payable
  • Premium Waiver Benefit: Premiums for the next three policy years or balance policy term, whichever is lower, shall be waived from the policy anniversary coinciding with or following the date of diagnosis.

Auto Health Cover (AHC) Benefit:

In case of death of original Principal Insured, the policy shall continue with new PI along with other eligible surviving Insured(s) without any payment of premiums from the policy anniversary coinciding with or next following the date of death of the Principal Insured, for a further period of 15 years, or up to specified age in respect of each of the Insureds, whichever is earlier, provided they are eligible for this AHC Benefit.

Payments of Premium:

You may pay premiums regularly at yearly or half-yearly intervals over the Cover period.

24×7 Customer Support:

The customer executives of the company are always there to help the customers. So that whenever one needs to contact the company, he/she can do that very easily.

Comparison Between Tata AIG Health Insurance and LIC Health Insurance

The following table gives a brief idea about the two companies and their differences. Have a look.

ParametersTata AIG Health InsuranceLIC Health Insurance
Health plans and kinds

Two

  • Tata AIG MediCare
  • MediCare Plus (Super Top-up)

Two

  • LIC’s Cancer Cover
  • LIC’s Arogya Rakshak
Gross direct total premiumAs per the IRDAI Annual Report of 2021-2022, it is Rs. 1930.04 croresIt is Rs 428,024.97 crores. (From the same source)
Claim settlement ratio86.53%, As per the IRDAI Annual Report of 2021-202298.74%, As per the IRDAI Annual Report of 2021-2022
Solvency ratio1.79 (December 2021)1.77 (December 2021)
NetworkTata AIG General Insurance Company Limited has a robust multi-channel distribution network of 76,000 plus licensed agents including POSP, 550+ licensed brokers, and bancassurance partners; a workforce of 8,200+ employees, including 750+ full-time claim experts, spread over 150 locations, tie-ups with 6500+ workshops and 8100+ network hospitals.Life Insurance Corporation functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices, and the corporate office. Life Insurance Corporation’s Wide Area Network covers 113 divisional offices and connects all the branches through a Metro Area Network.
Digital platformABHA is a digital platform to maintain your medical recordsSATELLITE SAMPARK offices
Awards and recognitions
  • Extraordinaire Award at the 5th edition of Brand Vision Summit 2019-20.
  • Best Direct-to-Consumer PR Campaign of the Year, at the 2020 Customer Fest Show, organized by Kamikaze Media.
  • Some of the other winners of awards were Abbott India, Xiaomi India, Cairn India, Hindware Appliances, and Carl Zeiss.

Awards of 2020-2021:

  • ACEF Award – CFBP Jamnal Bajaj Award
  • Ashirwad Award
  • Economics Times BFSI Award Best Brand
  • FICCI Insurance Industry Award Best Campaign Award
  • National Award For Excellence in Digital Marketing 7th Edition Digital Advertising Award
Covid-19 benefitAvailableNot available
Health check-upPreventive health check-ups will be covered up to a maximum of 1% of the policy sum insured or Rs. 10,000, whichever is lower.Under this benefit, an amount equal to the actual expenses incurred but not exceeding half of the Applicable Daily Benefit shall be payable in respect of each Insured towards Health Check-up expenses once in every 3 policy years provided he/she undergoes Health Check-up and shares a copy of the medical report and the medical bills.
No Claim BonusFor every year that one goes without a claim, the company provides a bonus by bumping up the sum insured the following year. It starts with a 50% bonus and increases it each year, up to a maximum of 100% of the sum insured amount.In the event of every 3 claim-free policy years, an amount equal to 5% of the Initial Daily Benefit shall be added to the Applicable Daily Benefit at the end of the third claim-free year.
Daily cash benefitAvailable, the maximum limit is up to Rs. 2000 per day per hospitalization.

One can choose the amount of Initial Hospital Cash Benefit in respect of each of the family members proposed to be covered under the same policy

from Rs. 2,500 per day to Rs. 10,000 per day.

Tata AIG Health Insurance and LIC Health Insurance, which one should you choose?

It would be improper to decide in just one single line which company is better because both Tata AIG Health Insurance and LIC Health Insurance companies have come up with certain advantages which have made them popular among policy-seekers. If you have a medical history in your family regarding cancer, it would be advisable to go for LIC as you can get a cancer-specific policy that can serve your purpose. But, if you are looking for something budget-friendly yet beneficial with a variety of advantages, then the Tata AIG Health Insurance policy would be more suitable for you. In both cases, you need to choose the sum insured wisely so that at the time of a medical emergency, the coverage amount does not fall short. 

Remember, both companies have some pros and cons. So, the choice is totally up to you and your requirements.

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