Know what are the challenges of Health Insurance in India
Health insurance is one of the fastest-growing service sectors in the country. India has witnessed an overwhelming response in the health insurance sector. Getting health insurance has become a priority for Indians and making healthcare services affordable; the services offered under health insurance plans effectively ensure every individual's health. However, less than 15% of the population still opts for a health insurance policy.
The growth of the Indian health insurance industry is expected to remain a long as increased medical costs, population, and rise in lifestyle disorders are going to increase. Health insurance awareness in India is increasing but at a slow rate.
But, what challenges do Indians face when it comes to buying health insurance?
Here are some of the possible factors that are responsible for health insurance issues and challenges.
- Lack of knowledge about health insurance policy: Many people still think of health insurance as a tax saving or an investment tool. Many programs have been organized by the Insurance Regulatory Development and Authority of India (IRDAI) to educate the masses about the importance of insurance, but there still remains a gap. The major challenge is that people lack basic education and exposure to health insurance policies.
- Lack of awareness: According to reports, many people save their money and invest it in real estate or put their savings in liquid assets. Most people are still unable to understand the benefit of getting a health insurance policy.
- Wrong mindset of people: Many young people think that they are not at risk of getting any disease; hence, they do not think to opt for a health insurance policy. There are many people who think to opt for a health insurance policy when they fall sick.
- Unavailability of branches in the rural area: Gradually, there have been some branches in tier II and III cities, but, there are hardly any branches in the rural areas which are major problems of health insurance in India. The majority of the potential market is still untouched.
Measures Taken to Control the Challenges of Health Insurance Awareness
In 2008, a health insurance program ‘Rashtriya Swastha Bima Yojana’ was launched to offer healthcare coverage to citizens who are below the poverty line. Many healthcare outlets linked with this scheme conducted health insurance awareness programs across India. The IRDAI stated that the lack of health insurance awareness is one of the obstacles in the penetration of insurance across India.
More measures like Bima Bemisaal have been taken by IRDAI to create awareness about getting a health insurance plan. This awareness program by IRDAI educates the masses about the importance of health insurance.
Care Health Insurance also launched a customer awareness campaign named ‘The Moment of the Truth’ in 2019. The main agenda of this campaign was to guide the customer on how well they should use their health insurance policy.
>> Also read about Spreading Awareness of Health Insurance in India
Final Word
It is important for a country to be socio-economically advanced, which depends on the nation's overall health. Knowledge about health insurance challenges and its clauses will help the masses to understand its importance and would inspire them to buy it. Making the common man aware of the benefits of health insurance is the need of the hour.
Care Health Insurance is a specialized health insurance company that offers comprehensive health insurance plans to individuals and families. With a 95.2% claim settlement ratio, we provide hassle-free claim settlement and complete protection against medical emergencies.
Disclaimer: Plan features, benefits, coverage, and underwriting of claims are subject to policy terms and conditions. Please refer to the brochure, sales prospectus, and policy documents carefully.
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