Imagine being in a health crisis and not visiting a hospital because you are uncertain about the cost. This is the case for millions of Indians who do not have health insurance. As medical costs continue to rise, it is vital that everyone secures their medical needs with health insurance. While government initiatives aim to provide some cover, a significant chunk of the population remains uninsured. The need of the hour? Ensuring that the uncovered are finally brought under the umbrella of insurance coverage.
Here are some of the key reasons why so many Indians lack health insurance:
1. Lack of awareness about insurance: A significant portion of the population, especially in rural areas, is unaware of the benefits of insurance or how the policy operates.
2. Too costly: For people who make a daily wage, premiums, even low, are considered too high.
3. Too many steps involved: The assumption that health insurance requires so many details to be filled out that it's not worth the effort.
4. Availability: Health insurance coverage is low in remote areas where there are a few agents and no access to technology.
Covering the uninsured isn’t just a health priority; it’s a socio-economic necessity. Here’s why:
● Financial Protection: Medical emergencies can push families into debt. Insurance cushions this blow.
● Improved Health Outcomes: With coverage, individuals are more likely to seek timely care.
● Reduced Out-of-Pocket Expenses: India ranks high globally in out-of-pocket health expenditure. Health insurance can reduce this as it covers a major portion of medical costs.
● Socioeconomic Stability: Fewer financial shocks improve long-term economic stability for families.
Unlike employer or group policies, individual health insurance plans provide:
● Customised Coverage: You choose your sum insured, add-ons, and hospital network.
● Portability: Switch providers without losing benefits.
● Continuity: Not dependent on your job or employer.
● Tax Benefits: Premiums are eligible for deduction under Section 80D.
Individual health insurance also bridges the gap for senior citizens, gig economy workers, and self-employed individuals who might not have access to group cover.
The digital revolution is changing how insurance is distributed and accessed:
● Online Policy Purchase: Buy policies from your mobile phone.
● Telemedicine: Many policies now include teleconsultation benefits.
● Claim Transparency: Track your claims in real-time.
● Wider Reach: Apps and online platforms are bringing health insurance awareness to Tier 2 and Tier 3 cities.
Raising awareness is crucial. Here are steps that can help:
● Community Education Drives: Leverage local contributors and NGOs.
● Multilingual Content: Use regional languages to explain policy features.
● Simple Communication: Break down jargon into everyday language.
● Influencer Outreach: Social media influencers can spread the message faster and wider.
To cover the uncovered, insurers and regulators must:
● Offer Micro Insurance: Small-ticket policies for daily wage earners.
● Flexible Premiums: Weekly or monthly instalment options.
● Family Floater Plans: To cover all members under one sum insured.
● No Frills Policies: Focused on affordability, with essential cover only.
If you’re considering health insurance for the first time, keep these in mind:
● Pre-Existing Disease Cover: Understand the waiting period for pre-existing ailments.
● Hospital Network: Ensure your local hospitals are on the list.
● OPD and Maternity Cover: Check for these benefits.
India has committed to Universal Health Coverage (UHC) under the Sustainable Development Goals. Expanding insurance is key to meeting this goal. Here is how it can be done:
● Public-Private Partnerships: Collaboration can extend reach and improve service delivery.
● Technology Integration: Artificial intelligence and machine learning can help personalise and process claims faster.
● Policy Reforms: Simplifying the process and increasing tax incentives can boost participation.
Health insurance has become a necessity in India, not a luxury. With rising hospitalisation costs and a growing incidence of health concerns, having access to insurance is crucial. While the government strives to offer health insurance coverage to most citizens, some still live without it. Therefore, assessing the potential of individual health insurance coverage can benefit you financially during medical emergencies.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
Disclaimer: This article is published in association with HDFC Ergo and not created by TNM Editorial.