Well...this is a misconception, it's not true. As a coin has two sides, thus these two are the faces of coins. Mediclaim Policy is limited to hospital expenses whereas Health Insurance itself covers a wide concept. Mediclaim mitigates risk in monetary terms, it covers specific ailments and treatments that incur during hospitalization.
Under section 80D of the Income Tax Act, an individual can avail of a medical cover for a pre-specified sum. The deduction in the tax laws allows you to claim the premium for your family (children, spouse, parents).
The majority of people prefer buying the Insurance policy offline as they want to be interacted with by the agents, they feel secured while investing the amount to a known person. Yes...only the small percent of India's population follow the procedure themselves and find it easy, well with the ongoing conditions online platforms are beneficial in many ways.
They are unsure of the security offered them by the online service providers, people need to know that the Brand never ever loses its reputation on the wide range platform, therefore, everything (confidential information) is secured with strong antivirus software.
Remember the decision should be based on your needs, it purely depends upon your current financial situation, your family medical history, and other essential factors!