Page 21 - Insurance Times April 2017 Special Issue on Newindia

touched 36 crore mostly under govern-
ment schemes. The primary objective of
the government is to make health ser-
vices universal and accessible. The private
health and insurance industry could part-
ner in creating more facilities for treat-
ment of patients, such as leveraging idle
beds in private hospitals. A study by the
World Bank (2001) noted that at least 24%
of all people hospitalized in India in a
single year slipped below the poverty line
because they were hospitalized.

The unfortunate truth, and biggest moti-
vation to augment base-level health insur-
ance, is that a large number of people in
our country borrow money or sell assets
to pay for their hospitalization expenses/
medical treatment. There is a need to
incentivise people who are not inclined to buy health insur-
Top Up Health Insurance Plans: ance in form of free check-ups or discounts as part of ef-
Top-up health insurance plans provide an extra health care forts to deepen market penetration in this particular seg-
financing shield in the most economical way, especially, ment. The spending on healthcare is seen as a superior good
when employees have an employer-provided base health and only taken by people who are risk-taking, so it is required
insurance cover. They can easily top up their current health to incentivise those who don't buy health insurance.
insurance policy, by either contacting an agent or review-
ing various top-up options on the Internet. One should ide- For the people who are risk averse, it is important to
ally look for a top-up policy that gives an option to convert incentivize them by offering some value to them like free
to a full-fledged health insurance plan close to the retire- health check-ups or discounts, which will help in realising the
ment. To buy a top-up plan, one needs to fill up an online goal to make health insurance universal. It is a socio-eco-
application form. nomic challenge in India that health insurance is not acces-
sible to all and it lacks sustainability as well. Health insur-
Most insurance companies do not ask for a medical exami- ance sector can only grow, if it is commercially viable for all
nation while purchasing a top-up plan of up to Rs. 5 lakh, stakeholders.
unless there is a medical adversity listed in the application
form. In cases where there is a medical check-up required, Digiitization in Health Insurance:
the insurance company bears the cost for the same, once The digitization and IT are changing the landscape of
the application is accepted. A loading on premium or exclu-
healthcare and health insurance ecosystem in the country.
sion may be levied because of adverse results of a medical This will enable seamless interoperability of data that will
check-up. Top-up plans are often underrated plans and their facilitate patient safety and lead to better patient outcomes.
importance is clear when an insured leave a job and the new
With the health insurance sector poised for major growth
employer does not offer a similar policy or offers a reduced
in the coming decade, demand for more efficient systems
cover. The policyholder can certainly claim a tax rebate for of data storage and transfer is set to increase.
your top-up plan as per the Income Tax Act, Section 80D.
Aadhaar is the biggest disruptor as well as enabler in digital
Making Health Insurance Universal: society today and health insurance sector is one of the big-

The number of people covered under health insurance has gest beneficiaries. Integrating Aadhaar with health insur-

The Insurance Times, April 2017 21

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