Health Insurance in India

Health Insurance pays medical expenses that are incurred to the insured due to any variation in their health. Health insurance is different from all other insurances. In other insurances only the insurer and insured is present where as in Health Insurance other than the insurer and insured, it involves healthcare provider (third party) .

Health insurance in India began with the “Employees’ State Insurance Scheme” in 1948 for blue- collar workers employed in the formal private sector and followed by the central government health scheme in 1954 for the central  employees working for civilian assignments.

Mediclaim was the first standardized health insurance product in India which was launched in 1986 for the individuals and their families. India has a very large and heterogeneous private health sector and it accounts for more than 75% of all health spending in India.

Health Insurance Products in India

Health insurance market in India is mostly dominated by “hospitalization indemnity products”. Hospitalization indemnity products protect individuals from the expenditure that incur in the event of hospitalization.

Personal accident policy protects the insured against accidental death and any form of disablement happened due to accident. Its features are:

  • Lump sum benefits payout in the event of death or permanent disablement
  • A weekly compensation for temporary disablement.

Critical illness benefit products provide coverage against dreaded disease such as cancer , kidney failure etc. and provide a lump sum amount to the insured on the diagnosis of such critical illness or on undergoing of certain procedures.

Daily hospital cash benefit product covers incidental costs associated with hospitalization, which are normally not covered under hospitalization policy

High deductible hospital indemnity covers are top-ups covers which provide coverage beyond the deductible amount chosen and are suitable for persons who have a low sum insured in indemnity policies.