The writer, Ashish Mehrotra, is the Managing Director and CEO of Max Bupa Health Insurance.
It’s alarming how many people in India ignore health insurance, and I am witness to it almost every day. A common question I ask young people during a job interview is what kind of health insurance they have. The two most common answers I get are: ‘I don’t have one’, or ‘I have one, but I don’t know anything about it.’
A large number of people in India either don’t have insurance, or just go along with what their company gives them, without much thought to it. According to the Insurance Regulatory and Development Authority of India (IRDAI), only 44% of the Indian population is covered under a health insurance plan, and a huge majority of them are covered by government insurance schemes. According to publicly available research data, only 5-8% of India has health insurance from non-government providers.
What’s even more alarming to me is that many young people don’t think having health insurance is important. Many millennials and early-jobbers I meet are under the impression that they don’t really need it. Despite our efforts to create awareness, spending on a health insurance policy is low on their priority list.
What people don’t realise is that health insurance is not a want. It’s a necessity. It is not something you can ignore.
Healthcare is becoming more expensive in India. Imagine this: you are hospitalised for two days due to a medical emergency. At the end of it, you are handed over a bill of Rs 2 lakh – several tests, medicines and room charges. How would you pay? Does everyone have Rs 2 lakh set aside ready for such an unforeseen emergency? You would have to empty your pockets, borrow money and drain out savings.
Unless you have health insurance.
In my various interactions with youngsters, especially those in their twenties, I realised that there are a few key reasons why people don’t take health insurance seriously.
Lack of awareness: Health insurance policies aren’t as publicised as life insurance policies. I have even met people who have a policy, but don’t know how it works or how it can be claimed.
Carelessness: Many people don’t realise the costs that come with falling sick. They think that they are young and healthy, and accidents are rare. So, they just don’t think about it.
Not worth it: Many don’t believe that a health insurance plan actually benefits them. With rising inflation and cost of living, spending on a health insurance policy is not on their list of priorities.
Let me simply explain how wrong they are.
Rising costs: Do you know that the medical inflation rate in India stands at 20%? That’s huge. Healthcare is advancing at a fast pace, but with it, costs are also increasing. You must have a medical cover to ensure an emergency doesn’t empty your pocket and cause you further distress.
Cashless comfort: Policies with cashless hospitalisation will let you get treated without shelling out a penny from your pocket. Max Bupa offers a wide coverage with a sum insured of up to Rs 3 crores. You can even log onto our website, select an illness and find out how much our health insurance plans can help you save on treatment costs.
Protect your family: Most insurance policies cover your partner and children, and in some cases your parents too. This way, with your medical insurance, you will be able to take care of your family as well. Max Bupa offers some of the best family health insurance plans which cover your family, from new-borns to senior citizens and extended family in a single plan.
Critical illnesses: For life-changing illnesses such as cancer or lung disease, treatments are usually long-drawn and very expensive. This disrupts the entire family’s life and could wipe out your savings. Having some of the best health insurance plans, especially those with critical care covers, can keep you safe from such unforeseen circumstances. The critical care plan offered by Max Bupa covers 20 critical illnesses including cancer, open heart replacements, kidney failure and permanent paralysis of limbs.
Tax benefits: The premium you pay for your health insurance policy is tax deductible under section 80D, so that’s an added incentive.
Remember, being safe and securing your health is better than being sorry. Ignore nahi, insure karo.