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Last updated on: May 20, 2025
When comparing New India Assurance Health Insurance and Star Health Insurance, both are leading providers in India offering a range of health insurance policies, but they cater to slightly different needs. New India Assurance, a government-owned insurer, is recognized for its comprehensive policies, affordable premiums, and extensive hospital network. It is ideal for those seeking reliability and wide governmental backing. In contrast, Star Health Insurance is a private sector pioneer specializing in health insurance, offering innovative products, faster claim settlements, and specialized plans for families, seniors, and those with pre-existing conditions. While Star generally provides a smoother digital experience and tailored plans, New India Assurance stands out for its trustworthiness and legacy. Ultimately, your choice should depend on your specific requirements for coverage, budget, and service preferences.
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Read BioIn a country like India, where medical expenses are skyrocketing, having an adequate health insurance coverage is an important aspect of financial planning. Two of the oldest and most popular insurance providers for health are New India Assurance and Star Health Insurance. While it may be confusing to choose between them, a comprehensive comparison that includes factors like features, benefits, claims experience, customer service, and pricing can help you make an informed decision.
Both companies have a large customer base in 2025, selling top-rated individual and family floater health insurance plans. They are well-known for their market position, comprehensive coverage, quick claim settlement and digital services. But what sets them apart? To help simplify the answer to the question: Should you buy New India Assurance Health Insurance or Star Health Insurance in 2025?, let us unpack the key aspects.
“A general insurance company set up in the public sector in 1919.” Government of India, with a pan India footprint Over 4,700 hospitals in the network for cashless treatment Individual Whole Sum Assured and Family Floater (cover for spouse and dependent children) up to 50 Lakh Rupees Includes critical illness cover, pre existing disease after waiting period, no bonus for not claiming Full electronic platform for policy purchase, renewals and claims Wellness rewards and preventive medical checkup benefits
First private health insurance provider in India, started in the year 2006 Supplies urban and semi urban customers specialized in health products More than 14,000 network hospitals across the country for cashless claims Suited health insurance schemes for families, individuals, seniors, diabetics, cardiac patients, etc. Sum insured up to 1 crore rupees 98% claim settlement percentage for the year 2023-24 Paperless purchase and claim process via web and app
Quick fact: Star Health is regarded as the first health insurance plan in India that covers Indians with diabetes and heart conditions.
| Established Year | 1919 | 2006 |
|---|---|---|
| Network Hospitals | 4700+ | 14000+ |
| Types of Plans | Basic, Comprehensive, Senior | Wide range including specialized |
| Family Floater Plan | Yes | Yes |
| Sum Insured Amount | Up to Rs. 50 lakh | Up to Rs. 1 crore |
| Pre Existing Disease Coverage | AFTER Waiting Period | AFTER Waiting Period |
| Maternity Cover | Limited plans | Cover in selected plans |
| Critical Illness Rider | Yes | Yes |
| Health Checkup | - Available | - Available |
| Claim Settlement Ratio (22-23) | ~97 percent | ~98 percent |
| Digital Experience | - Advanced Online Portal | - Best in App - Paperless Process |
| round the clock dedicated online customer support helpline |
New India Mediclaim Policy: Basic and affordable cover for individuals and families New India Floater Mediclaim: Sum insured is provided per person but it is meant for growing families so that entire family is covered. New India Senior Citizen Mediclaim: For the age group above 60 years and is designed with incremental pre existing cover. New India Arogya Sanjeevani: Affordable IRDAI standard scheme for first time buyers New India Top Up Mediclaim: Covers high bills beyond your old policy
Star Health Family Health Optima: India’s most preferred family floater with the added benefit Star Comprehensive: Complete coverage including maternity and newborn benefits Star Seniors Red Carpet: Designed for people between the ages of 60 and 75 with easy entry. For diabetes patients, the plan others don’t generally accept, Star Diabetes Safe is the one you must have. Star Arogya Sanjeevani: Following standard plan (IRDAI recommended for all age groups) Star Criticare Plus: Lumpsum for critical as well as cancer and heart attack.
Expert opinion: Data indicates a consistent increase in purchase of plans with maternity cover, pre existing illness cover and outpatient benefit in India since 2023 as more young couples and working professionals are focusing on wellness.
Public sector legacy - strongly trusted High reliability of claims and claim processing time Accomplished for PSU, Government staff, and old customers Optional critical illness, accidental cover and more Preventive care, wellness programs
Broad hospital tie up which means easier cashless facility even in smaller cities first to introduce new treatment programs for chronic conditions; Good for customers who have pre-existing problems such as diabetes, hypertension Modern digital infrastructure for effective online procedure No hassle claim settlement and high customer reviews
People also ask: Are all the hospitals in India which provide cashless facility covered by New India Assurance and Star Health? Both are quite well connected and in major cities you will not have too much trouble finding empanelled hospitals. Review up-to-date lists on insurer platforms prior to admission
Company that is stable (supported by a stable Government), reliable for long-term development. Reduced premiums on low-end and senior plans Option to travel together with other public sector insurances (motor, travel) Good for PSU and central/state staff.
Cons Limited insurance for special conditions such as diabetes or maternity. Only a little longer, but processing queries through branch offices could take a little longer Digital portal is strong but apps lag behind private competitors
Wide range of specialist requirements and new features each year Immediate digital purchase, renewal, upload of documents and claims Improved customer service including live chat and IVR New additions are added to the plans almost every year.
Cons Premiums slightly higher for comprehensive and senior citizen policies Some policies have provisions with limits on room rental or day care fees. For these reasons, non cashless claim support may be less in rural areas than in the more urban centres.
Did you know? A year 2024 industry report found that average fully online claims processing time for Star Health was 3 to 5 working days whereas the median time for New India was 5 to 8 working days.
Claims settlement ratio and customer reviews play a vital role in deciding the actual value of an insurer. Based on latest available IRDAI data for the year 2023-24:
Insurer Claim Settlement (Health) Ratio Claims Settlement in 3 months Major Grievances Received
New India Assurance 97.3 percent 92 percent Moderate Star Health Insurance 98.2 percent 95 percent Low
Both are above the industry average - Star Health is slightly better than the industry average for quick settlements. Independent online ratings from genuine users of Star Health app-based claims tracking and swift redressal services are the most common factors that have led to the higher ratings.
Case Study: Mr. Anil (45 years old) of Pune had cataract surgery in 2024. He signed up for a Star Family Health Optima plan. Hospital was a cashless facility and he was settled on his claim within 72 hours. His friend Mr. Suresh used New India’s Floater Mediclaim for a similar surgery and got reimbursed within a week, reflecting the efficiency of this company too.
People also ask: Is it possible to port my existing health policy from New India Assurance to Star Health or vice versa? Yes, as per the IRDAI rules, it is permissible to port policies from one insurer to another at every renewal by giving notice 45 days in advance without any loss of accrued benefits.
Premiums for health insurance in 2025 are based on sum assured, age, family size, add-ons, and past ailments. Let’s take a look at the difference in annual premiums for the same standard floater plan (Family of 2 adults + 1 child, age 35, sum insured 10 lakhs, non smoker, metro)
Insurer Model Plan Premium (Rs. Annual)
New India Assurance Floater Mediclaim 14,500 Star Health Insurance Family Health Optima 17,200
Star Health usually has a bit more expensive premium for the same coverage with more add-on benefits. New India Assurance schemes are cost effective, particularly for the families of government employees.
People also ask: Does health insurance premium increase in 2025? Yes, based on medical inflation and new wellness features, insurers update rates every year. Pricing comes in early in the year and tends to be lower.
Which medical conditions/ special needs are better covered? Star Health wider custom plans for chronic diseases such as diabetes, heart diseases and asthma. Senior citizen plans: Both are very good but Star’s Red Carpet is very popular as there is not much waiting period. Family benefits: Family floater plan of Star Health is an advantageous offer for children and new-borns and New India family floater is an affordable offer for government employees or low claimants. Maternity and newborn: Star Comprehensive includes delivery, newborns and even vaccination costs. Experts say: The insurance providers have enhanced the coverage for mental disorders and OPD expenses since 2023 following new IRDAI rules on inclusive health underwriting.
As always, it’s a good idea to use an online insurance aggregator or marketplace site to see and compare health plans with different companies all in one place. These platforms provide side-by-side plan comparisons, instant premium quotes, and policy features that make it easier for individuals, families, or senior citizens to make an informed choice about their health insurance in 2025.
Comparing through online marketplaces also helps you avail exclusive discounts, cashback offers, and timely renewal reminders that are sometimes not available otherwise.
New India Assurance and Star Health Insurance both offer online platforms for customers to purchase, renew, and manage their policies in 2025. You can:
Buy health insurance using approved websites or apps Upload and send online KYC documents and medical papers Cashless claims or online uploading of reimbursement claims Monitor claim status in real time via app/web login Emergency hotlines available 24 hours a day
Cashless authorizations are good for large planned expenses (like surgery), and Star Health’s tie up with more hospitals across India gives it a small edge in smaller cities, for example.
People also ask: How can I check my health insurance claim status online for New India Assurance or Star Health? Check the claim status and required documents: Visit the official insurer’s website or app, log in using the registered mobile number and the policy number and check the claim status and documents required.
There are exclusions and waiting periods that you need to check before purchasing health insurance.
Most existing pre-existing diseases are covered after 2 or 3 years waiting Maternity, neonatal care: 9 months waiting period, 48 months Modern daycare procedures are usually taught after Year 1. Cosmetic surgery, dental, non-prescription treatments and some mental health conditions still not covered Always read the wording of the policy or the claims summary document to ensure that claims are not rejected.
Did you know? In fact, under IRDAI rules, since 2024, all insurers have to clearly state the permanent and temporary exclusions right at the front of the ‘customer information sheet’, so that it becomes easier for you to know what is covered and what is not.
For long-term trust and budget plan: go for New India Assurance, if you are a government employee or senior citizen Star Health Insurance is also highly rated for specialty plans in chronic illnesses, maternity, speed of claim processing, and comprehensive coverage. Star rates can be a little higher, but there are additional benefits and a larger cashless network. always compare several health policies on a reputable online insurance marketplace before purchasing or switching insurer
Can I get Lifetime Renewal in New India Assurance and Star Health Insurance? Yes, both have lifetime renewals subject to payment of premium and terms.
Does both cover prehospitalization and posthospitalization? Yes, typically both cover 30 days pre and up to 90 days post hospital expenses.
Is it possible to purchase health insurance online in 2025 without an agent? Yes, most insurers and reliable marketplaces provide the opportunity to buy the policy completely online with instant download of the policy and payment methods.
New India Assurance or Star Health - Which is better for senior citizens? Both have committed senior plans. Star’s Red Carpet plan is popular for its convenience (i.e. easier entry and less waiting period), while New India’s Senior Citizen plan offers lower premiums if you do not have pre-existing diseases.
How do I add more sum insured or riders? At renewal you can ask for an increase in sum insured or add critical illness, personal accident or OPD riders for an extra price.
Do both insurers provide health checkup vouchers? Yes, annual or bi-annual health checkup benefits are available on a no claim basis depending on the chosen plan.
Are OPD expenses covered? At additional cost, some premium plans cover OPD, teleconsultation, and pharmacy. Always check plan details.
Can I avail my health policy throughout India? Yes, provided the hospital is a part of the network of your insurer, cashless cover is available pan India.
Can NRIs buy? Most policies are for Indian citizens/residents but both the insurers provide NRI desk support for specific products.
Where can I compare health insurance websites on the Internet? Online insurance marketplaces allow you to compare health insurance plans, coverage, discounts, and make instant purchases according to your needs.
How could we improve this article?
Written by Prem Anand, a content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors.
Prem Anand is a seasoned content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors. He has a strong command of industry-specific language and compliance regulations. He specializes in writing insightful blog posts, detailed articles, and content that educates and engages the Indian audience.
The content is prepared by thoroughly researching multiple trustworthy sources such as official websites, financial portals, customer reviews, policy documents and IRDAI guidelines. The goal is to bring accurate and reader-friendly insights.
This content is created to help readers make informed decisions. It aims to simplify complex insurance and finance topics so that you can understand your options clearly and take the right steps with confidence. Every article is written keeping transparency, clarity, and trust in mind.
Based on Google's Helpful Content System, this article emphasizes user value, transparency, and accuracy. It incorporates principles of E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness).
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