When choosing a health insurance provider, two of the biggest names in India are Star Health and Allied Insurance and HDFC ERGO General Insurance. Both insurers offer extensive coverage, but how do they compare in terms of claim settlement, customer satisfaction, and hospital network? Let’s dive into the details to see which one is the better choice for you.
1. Claim Settlement Ratio (CSR): Who Pays Faster?
The claim settlement ratio is a key metric that indicates how efficiently an insurer processes claims.
- Star Health: 82.31% of claims settled within three months (2023-24), the lowest among stand-alone health insurers.
- HDFC ERGO: A much higher 98.59% of claims settled within three months, showcasing a stronger commitment to quick claim resolution.
Winner: HDFC ERGO – Faster and more reliable in processing claims.
2. Incurred Claim Ratio (ICR): How Much Do They Pay Out?
ICR shows the percentage of premium collected that is used for claim payouts.
- Star Health: 65% (2022-23) – A moderate ratio, suggesting financial stability.
- HDFC ERGO: 79.04% – A higher payout rate, indicating more benefits reaching policyholders.
Winner: HDFC ERGO – More policyholders are benefiting from their claims.
3. Hospital Network: Where Can You Get Treated?
A vast hospital network ensures cashless treatment convenience.
- Star Health: 14,000+ network hospitals.
- HDFC ERGO: 13,000+ network hospitals.
Winner: Star Health – Slightly larger hospital network.
4. Customer Complaints & Satisfaction
- Star Health: Higher complaints (29 per year on average) and scrutiny from IRDAI over claim rejections.
- HDFC ERGO: Significantly lower complaints (6.8 per year on average) and better customer feedback.
Winner: HDFC ERGO – Fewer complaints and higher customer trust.
Final Verdict: Which One Should You Choose?
Overall, HDFC ERGO emerges as the superior choice, offering a faster claim settlement process, higher payout ratios, and better customer satisfaction. However, if a larger hospital network is your priority, Star Health might still be worth considering.
When selecting health insurance, always compare policies based on your specific needs, such as coverage benefits, premium affordability, and exclusions. After all, the best health insurance is the one that truly supports you in times of need.
Please refer to your financial and health insurance advisor before making any decision. Kindly read the below references to verify any information.
References
1. Economic Times. (2025). "Latest claim settlement ratio of health and general insurance companies released by IRDA." Retrieved from https://m.economictimes.com/wealth/insure/health-insurance/latest-claim-settlement-ratio-of-health-and-general-insurance-companies-released-by-irda-in-2025/articleshow/118836990.cms
2. India Today. (2025). "Star Health under IRDAI radar for health insurance claim settlement practices." Retrieved from https://www.indiatoday.in/business/story/star-health-claim-settlement-practices-irdai-scanner-report-insurance-sector-news-personal-finance-2699329-2025-03-26
3. PolicyBazaar. (2025). "HDFC ERGO vs Star Health: A detailed comparison." Retrieved from https://www.policybazaar.com/health-insurance/companies/hdfc-ergo-vs-star-health
4. Join Ditto. (2025). "HDFC ERGO Health Insurance vs Star Health Insurance: Which one is better?" Retrieved from https://joinditto.in/articles/health-insurance/hdfc-ergo-health-insurance-vs-star-health-insurance
5. Reuters. (2024). "Indian court tells Star Health to share details of leak so Telegram can delete chatbots." Retrieved from https://www.reuters.com/world/india/india-court-asks-star-health-share-data-leak-details-with-telegram-deletion-2024-10-25
6. Reuters. (2024). "India's Star Health probes alleged role of security chief in data leak." Retrieved from https://www.reuters.com/technology/cybersecurity/indias-star-health-probes-alleged-role-security-chief-data-leak-2024-10-10
7. Reuters. (2024). "Hacker uses Telegram chatbots to leak data of top Indian insurer Star Health." Retrieved from https://www.reuters.com/technology/cybersecurity/hacker-uses-telegram-chatbots-leak-data-top-indian-insurer-star-health-2024-09-20
