Page 42 - Insurance Times September 2021

So, Health Insurance is a necessity now a days. It is not a As per IRDAI in 2019-2020,
luxury. It provides vitally important financial protection for Y Total GIC business - INR 1,88,916 Cr
individual and family. Lack of Insurance means going without
Y Share of Fire - 8.33%
needed healthcare, having to use lower quality care or having
to pay medical expenses out of pocket. So, Health insurance Y Share of Marine - 1.87%
is protection that provides benefits for covered sickness or Y Share of Motor - 36.50%
injury.
Y Share of Health - 30.10 (INR 56,865 Cr)

It is protection for an agreed price against the cost resulting Y Share of Misc. - 23.21%
from specific health risks. In India, health insurance is
transacted into As per IRDAI incurred claim ratio of health insurance as on
Y Non- Life Insurance Companies 31-03-20 is 88.43%. Under group mediclaim policies is 98.84%,
individual mediclaim policy 72.86% and under government
Y Life Insurance Companies
scheme 97.22%.
Y Specialist stand alone health insurance companies
After motor, only Health Insurance is most demanding
First Mediclaim policy was introduced in 1986 by Public Sector insurance. So, Health insurance is one of the fastest growing
General Insurance companies. sectors in Indian Insurance industry. Growth of health
insurance mainly lies in :-
As on 31.03.2020, 68 Insurers are working in India. 1) Better customer service, standardization of procedures
Y 24 are in Life Insurance and definitions.
Y 27 are in General Insurance 2) Standardization provides simple innovative products and
Y 6 are in stand alone Health Insurance better understanding of terms.
Y 11 are acting as a Re-insurer. 3) Increased awareness about benefit of health insurance
in public due to rise in medical cost.
As a result, the number of persons covered has grown from
690 Lacs in 2001 to 4987 Lacs in 2019-20. Total health Now we will examine, underwriting aspects of the Health
premium collected as on 31.03.2020 is Rs. 56,865 Cr, which is Insurance.
30% of total G.I. business.
Y Share of business under Govt. schemes - 10% covering Health Insurance underwriting refers to the process by which
3590 Lacs people (72%) a life or health insurer uses an applicant's medical history to
Y Group Mediclaim contributes 51% covering 947 Lacs decide whether they can offer them a policy. Whether policy
people (19%) will include Pre-existing disease condition exclusion or a
premium that's higher than the standard rates.
Y Individual mediclaim contributes 39% covering 450 Lacs
people 9%
The most important question in underwriting is: - What should
be the rate of premium to be charged under a policy of
There is a huge scope for Health Insurance business to grow Insurance?
in India. Out of 130 Crore population, 49.87 Cr are covered
under Health Insurance schemes.
The rate of premium is fixed according to certain
The health awareness is rising day by day in public with regular principles: -
yoga, Gym, Walking, Jogging and also taking organic food Y Firstly - the premium varies according to the degree of
but on the other side rising health expenditure, food habits hazard or exposure to loss or damage to property.
and increase in morbidity rates compel people to purchase
Y Secondly - To assess the variations in the degree of
health insurance.
hazards
Health is wealth and only healthy mind can exist in a healthy Y Thirdly - The degree of hazard is determined based on
body. 70% of medical expenditure in our country is born by past loss experience or past medical history or claim
Individuals. history.

42 The Insurance Times, September 2021