Many of us have taken personal health cover policy (Mediclaim) some covered by their employer as group health insurance some have taken general policy with lot of exclusions and conditions to claim. But in reality excluding GMC general insurance cover wont give you a relaxing state for us. The real fate of such policy can be realized when we go for en cashing during emergency.
After all these reality check some insurance providers like Max-bhupa have come up with no frill health insurance cover at an additional premium but the cost of procuring such policy is like paying your bill which may or mayn’t come in future in advance.
The finance ministry has asked state-run general insurers to expedite launch of no-frills health insurance products targeting India’s poor, part of its agenda of taking financial inclusion to the masses.
The ministry is of the view that no-frills products will help in delivering affordable healthcare to a wider set of population. There are four public and 20 private sector general insurers registered with the Insurance Regulatory and Development Authority, but none of them offers a basic health insurance covering just the most prevalent diseases.
A no-frills product will be available at a lower premium as it will exclude low probability diseases. It will also impose restrictions on reimbursements to ensure that hospitals do not overcharge patients under the scheme. According to estimates, there are between 60 and 70 crore people in India who do not have any medical cover. Companies have realised the business potential in this segment—. 70,000 crore by way of premiums.
