Page 19 - The Insurance Times September 2022

Cover Story

PPN SYSTEM - HAS

DONE MORE HARM

THAN BENEFIT -

CONTINUES TO

VIOLATE PRINCIPLE

OF INDEMNITY

wrote an article titled PPN SYSTEM - FAILURE OR health insurance portfolios of four PSU companies. Worst
I SUCCESS, which was published herein this publication affected stakeholders are not only policyholder but also the
intermediaries involved in selling these products.
in March, 2017. In the said article, I had anaylsed the
reasons in detail, which are the causes that this
system was failing in its objective in the first five years of Medical insurance was introduced at the insistence of
its' introduction by four PSU companies. Unfortunately, now Government around nineteen eighties with the noble
when almost a decade is passed the PPN system has done objective of providing financial succor to citizens whenever
more harm than benefit and continues to violate Principle any family member faces medical exigencies particularly
of Indemnity. when the disease is a critical one. It indeed has played a
vital role for these objectives and innumerable number of
In this present article, at the cost of some repetition, I have families have been benefited, who, otherwise, would have
once again anaylsed with more in-depth study of the system been financially ruined or would have been deprived of costly
from the beginning particularly in the light of new scenario, treatments.
where private sector including standalone health insurance
companies, have come in the field with aggressive Prior to introduction of health insurance coverages, for all
marketing of their health products. This new scenario has the service providers in the health sector, it was privately
proved how the PPN system is harming dangerously the funded health treatment services. However, ever since the
health insurance cover started in India, scenario in health
treatment services has changed drastically. Other than
About the author government hospitals, for almost all private sector hospitals
and nursing homes it has become insurance funded health
R C Thakker
treatment services which resulted in substantial increase in
A.I.I.I.
revenue generation. Commercial aspect and profit motives
Chief Insurance Advisor
for improvement in quality treatment services under
The Insurance Times, September 2022 19