India is undoubtedly one of the fastest developing economies in the world, but on the other hand it is also prone to many diseases. Due to progress in medical science, in India many disorders are remediable but what is troubling is the cost to treat those diseases. Many get this need provided by their employer’s Health cover; however, that isn’t the lasting solution. The employer’s health assistances or Insurance cover persists only till the time you are employed in the company, once you leave you lose all the amassed benefits and coverage too. Probably, by that time, one’s age could be above 30 years so chances of premium hike prevail, plus the pre-existing illnesses remain unattended at the time of procurement of insurance. Hence, it’s imperative in India that people buy a health insurance plan to safeguard their medical requirements.
When we buy a health insurance plan, a contract binds the insurer to guarantee financial compensation in specific medical emergencies. The terms of the insurance agreement are not essentially limited to only emergencies but cover regular visits and hospitalization charges.
Insurers are linked with some hospitals for delivering suitable medical treatments to the policyholders. When we visit an associated hospital, we may be permitted to assistances such as cashless treatment per the policy dictations. The significance of health insurance is particularly understood when faced with a health emergency, and it allows us to focus on our recovery completely.
Millions of Indians lose their lives to heart diseases and diabetes, which, as per a report by WHO is the principal cause of death in India. Apart from that, respiratory diseases, birth difficulties, and communicable diseases are also extensive. A brilliant method to prepare for such circumstances is to take benefit of health insurance plans. In India, only 1.1 billion of the Indian population which is less than 15% of the Indian population is protected under health insurance. As per WHO statistics, 31% and 47% of the hospitalisations in urban and rural India are either funded by loans or through sale of possessions. Moreover, as per the figures, 70% of Indians use up their whole income on healthcare and 3.2% of Indians fall under the poverty line due to high medical bills. This evidently shows India is still an available market for health insurance plans.
Benefits of health plans:
• Financial Dependability
Medical emergencies are unexpected and can cause financial issues instantly. Emergency medical expenses may cause severe monetary distress. One may have to dip into their savings or sell their possessions to meet such expenditures. When we buy a health plan, we secure our economic stability during an illness by covering such expenditures and give one the opportunity to prioritise their expenditures.
• Quality Treatment
We may have to compromise on the treatment plan due to deficiency of funds. With the best health insurance plan, we have the guarantee of obtaining the best treatment to recover from any health condition.
• Insurance Plans Options
Different insurance companies offer different kinds of health policies. Selecting the best health insurance available in India may be confusing but there are many options available and one may avail of a health plan that specifically caters to their requirement. One can opt for an insurance plan built on their medical past, family history, age, gender, and necessity. Many people get medical insurance for parents, and some elect for floater family medical insurance. One should be clear about all the features of their medical insurance and clear their reservations before selecting a policy.
• Coverage
Insurance providers propose diverse types of plans to capitalize on coverage and benefits. Mostly coverage includes pre- and post-hospitalization expenditures, hospitalization expenses, day care procedures, and domiciliary treatment. Two of the most elementary types of health insurance plans in India are as follows:
• Indemnity plans
These policies recompense for the actual finance that has been experienced. One may take advantage of the complete coverage amount multiple times throughout the policy tenure. Few expenses covered under indemnity health insurance plan are Hospital room rent, Operation theatre charges, Doctors’ fees, Medicine costs, pre-and post-hospitalization expenses.
• Lump-sum benefit policies
These kinds of health policies pay the entire amount guaranteed if the covered event ensues. The aim of such plans is to provide financial support to meet costs like Physiotherapy or further rehabilitation measures, Monitoring devices required in case of critical sicknesses, Complementary medical tests and investigations, Dietary supplements, Ergonomic furniture or home adjustments needed due to the illness.
As per the India Brand Equity Foundation (IBEF), there is a considerable growth among insurance takers, courtesy of distribution networks, and pioneering products. Covid19 has motivated a 41% rise in medical insurance companies in the non-life insurance sector.
As people become acquainted with medical emergencies and their financial problems, health insurance has come to the fore. Having a medical insurance policy is now a requirement for every individual. Apart from providing risk coverage against expenses caused by medical disorders, there are other reasons why medical insurance is necessary.
When associating market size for FY20 and FY21 in India, the new business insurance premium has seen an upsurge from US$36.7 billion to US$37.1 billion. The renewal insurance premium has got an increase from US$43.9 billion to US$53.3 billion (Ref IBEF). Even though the statistics are immense, the ground reality is very unalike.
Many people in urban and rural India are still unsure about the necessity for insurance. Without generating awareness about medical insurance, it will be problematic for the insurance industry to reach its projected growth by 7-9% in terms of gross direct premium income in FY22.
The post Importance of Medical Insurance in India first appeared on AIHMS Blog.
