Star Health Insurance Company is a prominent player across the Indian health insurance sector, offering a diverse portfolio of health insurance policies. The insurer is India’s first standalone health insurance company and is currently the second-largest in terms of health insurance volumes. Given the significant market share, many people associate the company with reliable insurance policies that ensure peace of mind. But is this truly the case? Let’s find out now.
Star Health Company Overview and Financial Strength
Being India’s first standalone health insurer, Star Health Insurance was built from the ground up with its physical network of agents, and over the years, they introduced various policies – specifically for senior citizens, heart patients, and even cancer survivors. While this helped them gain a strong foothold in the industry, recent operational challenges have raised concerns about the insurer’s service quality and future financial stability. The premise for this is very simple — for a company to insure you when you need it the most, the company must have enough cash reserves at the time you make a claim. And one primary metric that indicates this is its annual business volume.
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Over the last three years, the company’s operating revenue has increased from ₹11,294 crores to over ₹15,037 crores. That’s over a 33% increase, which indicates that people trust the company. However, this is not the only metric that you should look at, especially because Star has numerous policies for cancer and heart patients which they get significant revenue from.
Star Health Insurance Claim Settlement Ratio
The next metric you should look at is an insurance company’s claim settlement ratio, which shows us the percentage of claims settled against the total claims they receive within a given financial year.
Star Health Insurance has consistently had a CSR of less than 90% in the last 5 years, averaging 82.96% from FY 2021-24. This figure is significantly below the industry average of 89.76%. This shows that the company’s claim settlement could be improved significantly.
Star Health Insurance Complaint Volume
An insurance company’s complaint volume indicated how many complaints policyholders filed against 10,000 claims. Over the years, Star Health Insurance’s complaint volume has increased from 34 in 2021 to 56 in 2024. This is significantly over the industry average of 22.66 complaints per 10,000 claims. This indicates that more customers aren’t happy with the insurer, which is a cause for concern.
Note: All the raw data is sourced from IRDAI filings and inferred by Ditto in-house.
| Metrics | Star Health 3-year Average Numbers (2021-24) | Industry Averages (2021-24) |
|---|---|---|
| Claim Settlement Ratio (average from 2021 - 2024) |
82.96% | 89.76% |
| Incurred Claim Ratio (average from 2021-24) |
72.84% | 83.92% |
| Complaint Volume (average from 2021 - 2024) |
46.1 | 22.66 |
| Annual Average Business Volume (in ₹ Crores) (average from 2021 - 2024) |
₹13,209 crores | ₹3,157 crores |
Star Health Insurance Plans
Star Health Insurance offers a diverse portfolio of insurance policies that cater to different people. These include standard health insurance plans providing substantial coverage at affordable premiums to niche health insurance plans that cover heart ailments and even cancer. Let’s take a look at them now:
- Star Special Care Gold
- Star Health Premier
- Star Health Gain
- Star Super Surplus Gold
- Star Medi Classic Gold
- Star Family Health Optima
- Star Red Carpet Senior Citizens
- Star Cardiac Care Platinum
- Star Young Star
- Star Diabetes Safe
- Star Assure
- Star Super Star
- Star Women Care
- Star Medi Classic
- Star Comprehensive
- Star Special Care
- Star Smart Health Pro
- Star Cancer Care Platinum
Star Health also provides various add-ons that you can add to existing plans besides these base insurance policies. These add-ons include a reduction in pre-existing diseases, coverage for consumables, critical illness coverage, etc. Such add-ons let you customise your policies and tailor them to your requirements.
Pros & Cons of Star Health Insurance
- Advantages of Star Health Insurance: One of Star Health Insurance's biggest strengths is its diverse portfolio of health insurance policies. Unlike many insurers that offer only standard health plans and a limited number of plans catering to niche ailments – such as cancer or heart disease – Star Health has a broad range of policies tailored to different medical needs – senior citizens, maternity expenses, critical illnesses, cardiac conditions, and even specific diseases like diabetes.
- Disadvantages of Star Health Insurance: Despite this significant advantage, Star Health Insurance has some major drawbacks. One of the most significant concerns is its high complaint volume, which has been increasing over the years. This is certainly not a good look if you’re looking for a smooth claim experience.
Another major drawback is the presence of disease-wise sub-limits and room rent restrictions in many of its policies. Even though some plans provide high cover amounts, you may still face out-of-pocket expenses due to capping on specific treatments.
Moreover, numerous network hospitals have started to blacklist Star Health Insurance due to servicing issues of late, leaving policyholders in a precarious situation.
While Star Health offers specialised products, given the increasing complaints and limitations in coverage, you should probably talk to a good, unbiased insurance advisor before purchasing a plan.
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Conclusion: Should You Choose Star Health Insurance?
Star Health Insurance presents a compelling argument if you have a severe pre-existing disease such as cancer or heart disease. Policies like Star Cancer Care and Star Cardiac Care provide much-needed support for people who might otherwise not be eligible for a health insurance policy. However, the insurer has been working on improving its policies with better features and fewer restrictions. For Instance, Star Super Star is one of the most comprehensive health insurance policies in the industry. Will this plan turn around Star Health Insurance’s fate? Only time will tell.
While most of Star’s plans address niche requirements, you must weigh the insurer’s pros and cons before making a final decision. If you need help choosing the right policy, feel free to chat with us on WhatsApp or book a call at a convenient time. No spam — just honest insurance advice.
