Buying Health Cover Online? 3 Costs You Never See

When you buy health insurance on apps like Policybazaar, the insurer pays the platform a commission from your premium. You still pay the full amount — but understanding this helps you shop smarter and avoid plans pushed for the wrong reasons.

Here's what happened: Digital insurance aggregators like Policybazaar earn a commission from insurers — typically 10–20% of your annual premium — every time you purchase a policy through their platform.. When you enter your phone number on an aggregator app, you become a sales lead; agents are incentivised to call quickly and convert you, not necessarily to find you the cheapest or best-fit plan.. IRDAI-licensed insurance brokers are legally required to offer multiple insurer options, but the ranking and 'recommended' labelling of plans on these platforms is not always regulated for neutrality..

What you should do: Use aggregator apps to shortlist 2–3 plans, then visit the insurer's own website directly to verify the exact premium — base premiums cannot legally differ by channel under IRDAI rules.. Check the plan's claim settlement ratio on IRDAI's public annual report (irdai.gov.in) before buying — a higher commission does not mean a faster or fairer claims experience.. Avoid sharing your phone number until you are ready to buy — use the 'get quote' feature where possible, or use a secondary number during comparison to reduce aggressive sales calls..

Ask the aggregator or agent for the insurer's 'incurred claim ratio' — plans with ratios above 80% tend to pay claims more reliably than heavily marketed, high-commission alternatives.

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