Page 12 - Insurance Times January 2018 Sample

New Health cover to cut 62 per cent of Indians pay from their own pockets
premium in old age A staggering 62 per cent of Indians paid from their own pockets for their medi-
cal expenses in 2016, an annual study by global health
Apollo Munich Health Insurance has services company Cigna showed. The study, 2017 Cigna
introduced a 360° Well-being Score - India Report, unveiled by Cigna
health cover TTK Health Insurance, revealed that Indians primarily
where part depend on their own savings when it comes to fund-
of the pay- ing health emergencies, and also underscored the low
ment during penetration of health insurance in the country.
the earlier
years can be used to fund higher While 85 per cent are covered by private medical insurance, nearly two-thirds
of medical expenses are self-funded. Local government and public-welfare
rates in future. The advantage for schemes contribute a paltry 7 per cent. Both employer-provided and self-pur-
the customer in paying a higher rate chased insurance account for 13 per cent. About 15 per cent of the populace is
now is that the premium is eligible not covered by either private or government insurance schemes.
for tax breaks and most youngsters
do not use up the full amount of Rs Cigna TTK Health Insurance MD and CEO, Sandeep Patel, said: "Cigna 360° Well-
25,000 for this. being survey highlights three major areas that we as a country should focus on
- healthcare moving into digital, financial stability and preparing for retirement."
Unlike life insurance where insurers The Cigna TTK 360° Well-being Score survey was conducted in 13 countries with
are allowed to 'level' the risk pre- a sample size of over 14,219 respondents. In India, over 1,517 respondents were
mium and charge a uniform rate, covered through a 20-minute quantitative online survey covering 10 cities (metro
health insurance rates rise progres- and non-metro).
sively with the age of the insured.
While non-life companies cannot of- Respondents included a mix of males and females above 25. Cigna TTK 360°
Well-being Score is an independent study commissioned by Cigna and conducted
fer products with savings compo-
nents, Apollo Munich has devised a by Ipsos. Patel said that the study "enables us to understand the diversity of
the Indian customer". It points out a need for providing health insurance solu-
Health Wallet plan where part of the
premium goes toward reserve ben- tions for customers, focusing on affordability, ease of transaction, accessibility
efits. The reserve premium can be and overall security, he said.
used to fund health-related costs not Now, save money through health insurance and pay for
covered by insurance. Every year, the
unused reserve amount gets carried cosmetic surgeries
forward and earns a 6% bonus. This Your doctor may not have prescribed a liposuction procedure but you would still
accumulated reserve kitty can in like to do it on cosmetic grounds. While a regular
turn be used to pay up to 50% of the health insurance will not cover these expenses, Apollo
renewal premium, after five con- Munich Health Insurance has brought out a new
product called 'Health Wallet' that helps create a
tinuous renewals.
reserve kitty for future health expenses. In an inter-
To illustrate, a Rs 10,000 annual con- action with Moneycontrol, Antony Jacob, CEO, Apollo
tribution towards reserve from age Munich Health Insurance said that the 'reserve' ben-
30 will result in a cumulative reserve efit in the product that is unused gets carried forward and earns a 6 percent
of Rs 8.48 lakh by age 60. This fac- bonus. This accumulated reserve kitty can be used to pay up to 50 percent of
tors in the 6% bonus on the carried- the renewal premium, post five continuous renewals.
forward amount every year.
Here, whatever money is not used during the policy period gets carried forward
The out-of-pocket expenses the re- and earns a bonus. This can be accumulated and used for paying not just the
serve funds can be used for includes premium but also other healthcare expenses like cosmetic surgeries like
purchase of medicines, vaccinations, liposuction and rhinoplasty. For instance, if you have accumulated Rs 5 lakh over
dental expenses, diagnostic tests, the course of 10 years, that can be used to pay for your cosmetic surgeries that
spectacles, contact lenses, medical is otherwise a standard exclusion under traditional health insurance policies.
devices like blood pressure and sugar Individuals who already are covered by a corporate plan of a company can take
monitors, and consultations with a deductible option that will help them choose how much expense they can take
medical practitioners. care of, in case of an emergency.

12 The Insurance Times, January 2018

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