Does your insurer reward you for being healthy?

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Not so long ago, health insurance policies were mostly focused on offering hospitalisation coverages with standard premium rates for all policyholders. Things have, however, started changing with insurance companies focussing on wellness programs with an aim to incentivise people to adopt a healthy lifestyle.

These wellness programs usually offer three types of benefits for healthy living. First discount in annual premium at the time of renewal. Second, benefits like a discount on fitness centres memberships and third preventive healthcare with insurers covering the cost of pharmacies, diagnostic tests, etc.

“There are multiple ways in which an insurance company incentivises healthy members, as it reduces their probability of claims for the insurers. Since insurers are rewarded with a favourable claim experience, they pass on the benefits to policyholders too in the form of health benefits and rewards. This motivates customers to practice a healthy lifestyle and it is mutually beneficial for both them as well as the insurance company, said, Dhirendra Mahyavanshi, Co-Founder, Turtlemint, an InsurTech Company.

According to Policybazaar, 15% of customers use their wellness points as discounts while renewing their policies. There are products like MAX ReAssure, ABHI-Activ Assure, HDFC-My Health Suraksha, HEHI- Optima Restore, Cigna Pro health which provide the option to earn wellness points.

“With the pandemic, people have started to inculcate a better and healthy lifestyle in their daily life. In Bajaj Allianz General Insurance’s health insurance policies like Health-Guard or Health Infinity, we reward customers by providing discounts for Outpatient consultations or treatments, Pharmaceuticals, Health check-ups/diagnostics, redeemable vouchers for a health supplement, and also membership in Fitness Centres, Sports clubs, etc, “said Gurdeep Singh Batra, Head – Retail Underwriting, Bajaj Allianz General Insurance.

Many insurers offer a discount on future renewals if the policyholder’s lifestyle is deemed healthy. To earn the discount customers need to download the app of the insurer and link it with their fitness device to earn points.

“Some of the insurance companies have started giving discounts up to 30% on premium if you are healthy and follow a regular routine to make yourself healthy. Along with this, they are also entitled to free or discounted membership for various Gym and Spa and health studio,” said Amit Sharma, Founder, and CEO at eExpedise Healthcare.

Batra added, “We also give discounts to policyholders if they undertake the health risk assessment survey or fulfil certain wellness criteria like the number of steps taken in a day or we also consider health parameters like lipids, glucose, etc. which fall under the normal range. With technology, these wellness benefit discounts will be auto-generated for the insured at the time of renewal.”