Health Insurance in India At a Glance

by

SahilDoshi

Perceptions about Health Insurance policies in India:

A survey conducted to identify people s view on health insurances showed highly dissatisfying results in terms of how Indians perceived the health insurance policies. Most Indians see it as an instrument to shield savings. A very low percentage sees the health policies acting as protector of an important asset health. This is likely to be common in developing markets, where individuals tend to put their wealth ahead of their health. If seen on a larger scale, only a few households in India have emergency plans to match their medication and treatment costs. Health risks in India are viewed differently than those in the west. Proper planning for health related issues is yet to become a major priority.

Insurance Industry in its Initial Phase:

With a reach of barely 3-4% of the country s total population, India has a huge potential in the health insurance market. There are more than 30 products under the health insurance category provided by both life and general insurers.

The insurance industry is has also gone online, allowing customers to buy the common insurance products online and make the payment of premiums through the Internet. The level of health insurance penetration in India is lower than the world average. This has resulted in developing large networks of distribution channels like insurance agents, brokers, bancassurance, selling insurance through Internet or direct mailing. Banks and financial institutions saw a big opportunity in marketing different types of insurance products. Insurance brokers play a significant role in uniting insurance companies and the policy holders, and their part is significantly important when a claim is made.

Why buy Health Insurance?

Health treatments and medication costs are very costly nowadays. Many a times it is the hospital bill that is more painful the disease itself. The best solution to this is purchasing a health insurance. However, the health policy pays an amount not more than the pre-defined limit or the Sum Insured. Over 70 percent of spends on hospital and medical bills, come from pockets, thus relieving you only to some extent. A notable proportion of the population have refrained themselves from the treatment all together. Hence it is necessary that the sum insured on the health insurance policy is increased. Modern day lifestyle is prone to many diseases which further emphasizes the need for a health insurance policy. Medical insurance policy not only reimburses the costs incurred for the period of hospitalization but also the pre and post hospitalization period e.g. expenses for carrying out medical tests and purchasing medicines. The medical insurance cover will be limited to the predefined amount i.e. the sum insured.

Emergence as the 2nd largest segment:

Health insurance has become the second largest segment after motor insurance as more and more individuals realize the importance of securing their health. It is also becoming an important stream of business for many insurance companies offering products in health insurance.

Apart from the rising awareness for health insurance among the people, the Central and State governments were also instrumental in the growing this segment by taking up large-scale insurance programs like Rajiv Arogyasri Scheme and the Kalaignar Scheme in Andhra Pradesh and Tamil Nadu, respectively.

I am Sahil Doshi, a senior content writer who writes article for HDFC ERGO. HDFC ERGO health insurance in india are designed to ensure your financial security in case of any emergency.

Article Source:

ArticleRich.com