A Look Back at the Health Insurance Policy: How Has it Changed in the Last Decade? | SEO World

Monday, December 18, 2017

A Look Back at the Health Insurance Policy: How Has it Changed in the Last Decade?

There is nothing more valuable than good health. However, medical emergencies may strike anyone, anywhere. With the ever-increasing cost of medical expenses, paying through personal resources would be an expensive affair. In order to combat this issue, investing in a medical insurance plan is the best solution. There are numerous health insurance providers in the market that offer plans based on individual needs and requirements.

Though health insurance plans and policies are now easily available in the market, the same was not the case a decade ago. India was facing the issue of large population and high percentage of people was living in urban slums and rural areas. Providing adequate healthcare to such population was, therefore, a huge problem. The Government of India began exploring numerous health financing options and encouraging the development of health insurance.

Role of government bodies and private insurance companies

The Insurance Regulatory and Development Authority of India (IRDA), a statutory agency regulating the insurance sector in India has brought about numerous changes in the past few years. Health insurance companies, as opposed to earlier, are now allowed to have their own proposal form, which may be flexible. This form may come with a separate set of standard declarations. Besides, IRDA has introduced guidelines to reward individuals on the basis of preventive and wellness habits. This step will help policyholders to monitor and improve their health constantly. They may then enjoy the benefit of discounts during their policy renewal, as a reward for maintaining good health.
The Government of India has introduced numerous schemes to encourage the penetration of medical insurance in the country. One of them is the Community Health Insurance Scheme. This scheme aims at providing coverage to those below poverty line. There are numerous schemes launched to cover the needs of senior citizens too. Such plans are controlled by General Insurance Corporation of India. Here, individuals are required to pay the necessary amount, and are then reimbursed once the claim is successfully processed.
The private health insurance sector too has contributed towards bringing about a change in the industry. In order to effectively deal with competition, private insurance providers are offering lower costs and high level of customer satisfaction. Through such attractive benefit offerings, several individuals are now seeking coverage through medical insurance policies.
Penetration of health insurance in India
The number of people investing in medical insurance plans has increased. According to statistics provided by India Brand Equity foundation (IBEF), around 36 crore individuals in the country were covered under health insurance policies in the year 2015-16. This constitutes nearly 30 percent of the total population in India. Statistics show that this number has increased every subsequent year, thereby indicating that the penetration of medical insurance policies is increasing steadily. It is only assumed that the numbers will increase every year. People are now understanding the advantages of investing in a health insurance policy, and are enjoying financial protection against ever-increasing medical costs.