Hello All,

I came across an intriguing fact while researching on which Health Insurance policy to buy.

Isn’t premium for a floater policy supposed to be less than the sum of premiums for corresponding individual policies?

Here’s what I found:

Case #1
ICICI Lombard, Complete Health Insurance
Premium for Sum Insured of 5 Lakhs, for 1 Adult, in the age group 26-35, is 6195.
Premium for Sum Insured of 5 Lakhs, for 1 Adult, in the age group 56-60, is 22896.
Premium for Sum Insured of 5 Lakhs, for 2 Adults, one in the age group 26-35 and the other in the age group 56-60, is 36656.
But 6195 + 22896 is 29091.
Premium Calculator: https://www.icicilombard.com/health-insurance/complete-health-insurance.cms

Case #2
Religare, Care
Premium for Sum Insured of 5 Lakhs, for 1 Adult, in the age group 25-35, is 5162.
Premium for Sum Insured of 5 Lakhs, for 1 Adult, in the age group 56-60, is 14603.
Premium for Sum Insured of 5 Lakhs, for 2 Adults, one in the age group 25-35 and the other in the age group 56-60, is 23920.
But 5162 + 14603 is 19765.
Premium Calculator: http://www.religarehealthinsurance.com/buy-health-insurance-policy-plan-online.html

Case #3
Max Bupa, Heartbeat
Premium for Sum Insured of 5 Lakhs, for 1 Adult, age 32, is 7485.
Premium for Sum Insured of 5 Lakhs, for 1 Adult, age 57, is 22266.
Premium for Sum Insured of 5 Lakhs (Family Floater), for 2 Adults, where age of the elder one is 57, is 34736.
But 7485 + 22266 is 29751.
Premium Calculator: http://www.maxbupa.com/productvariantpages/health-insurance-plan-HBIndividual.aspx and http://www.maxbupa.com/productvariantpages/health-insurance-plan-HBFamilyFloater.aspx

So what do you make out of these figures?

Here’s how I see it:
(i) Either my calculations are incorrect. If that is the case, I’d be glad if someone would point out what I’m doing wrong.
(ii) Or the calculators provided on these websites are grossly inaccurate, which would be a shame because many prospective customers base their decision on these figures.
(iii) Or, at least for these companies & policies, the whole sales pitch of “buy a floater policy” takes a whole new meaning. Worth mentioning here, that for Apollo Munich’s Optima Restore, the reported premiums for floater policies are indeed less that the sum of individual ones (Link: http://www.apollomunichinsurance.com/buy-health-insurance-plan.aspx).

Regards.