Page 13 - Insurance Times JUNE 2022

private health workers, who may have The National Health Authority is devel- The demand for such a product would
been in direct contact and care of oping a mechanism under which par- pick up slowly with rising awareness on
Covid-19 patients and may be at risk. ents can generate ABHA numbers for mental health issues, Dalmia said.
their newborns and young children.
Group health policies see The ABHA number will enable parents Ayushman cover likely for
rise in premiums in re- to upload all personal health records 40 crore more at small
from birth, as well as all healthcare
newal cycle benefits availed, ranging from public premium
Group health insurance policies up for health programmes to insurance Moving towards rolling out the world's
renewal in the current renewal cycle schemes. first comprehensive health insurance
saw price correction, where insurers scheme, the government plans to ex-
Currently, only individuals above 18
revised their premiums upwards. While pand the Ayushman Bharat health
years of age are entitled to enroll for
in some cases premiums went up 15- cover to over 40 crore more people
ABHA cards.
18 percent, others saw a marginal in- who are currently not covered under
To be sure, the central government
crease of 5 percent, with the median any government or private health in-
runs several programmes and
increase being 10 percent, said insur- surance scheme.
schemes, such as POSHAN Abhiyan,
ers and brokers.
Reproductive and Child Health, and While over 50 crore people (10.74
Medical inflation, losses incurred due crore families) are already covered
Rashtriya Bal Swasthya Karyakram,
to Covid claims, and inclusion of mod- under the Ayushman Bharat Pradhan
catering to young children and new-
ern treatment have weighed on group Mantri Jan Aarogya Yojana (AB-PMJAY)
borns.
health insurance premiums. The im- that provides free annual health cover
pact of Covid claims on prices has been of Rs 5 lakh to every family, the gov-
India's 1st standalone
somewhat lower this year, said insur- ernment now plans to extend this cov-
ers. This is in stark contrast to last year, mental health insurance erage for a small premium to those
when they factored in the Covid claims
cover soon who cannot afford a health insurance
received in the underwriting and in- at retail price. The plan is to bring
AXA France India, with its Indian insur-
creased prices accordingly. down the insurance premium by more
ance partners, is set to launch India's
Insurers have paid Rs 25,000 crore of first-ever mental health insurance than one-third of the retail price and
Covid-related health claims in the two cover in its group policies, said a per- make it affordable for the 'missing
years of the pandemic, according to son aware of the development. The middle' who are currently devoid of
the General Insurance Council (GIC). mental health insurance would provide any financial protection for health, an
The incurred claims ratio of private Rs 25,000 for consultation with thera- official said.
sector general insurers and standalone pists, psychologists, life coaches, The governing board of National
health insurers jumped by over 5 per- among others through virtual mode, Health Authority (NHA) - the imple-
cent and 10 percent, respectively, in and up to Rs 1 lakh for hospitalisation. menting agency for AB-PMJAY - ap-
2020-21, compared to the year-ago
The cover would also provide free proved the proposal in a meeting ear-
period, illustrating the impact of Covid
mental health assessment tests as rec- lier this month. The NHA is now plan-
on health claims, revealed the data
ommended by the World Health ning to start pilot projects in select
shared by the insurance regulator in
Organisation (WHO). This comes amid states over the next few months, af-
its annual report.
rising awareness about mental health ter which coverage will be expanded
in India and the number of cases in- pan India.
Now, government to issue
creasing after the pandemic came.
The move assumes significance as it
health IDs to newborns The policy will provide coverage for will mean premium health facilities in
Newborn babies and young children consultation, therapy medicines, and government as well as private sector
will be issued their own Ayushman hospitalisation, and is expected to be will be soon accessible to people with-
Bharat Health Account (ABHA) num- available from July 1, said the person out any income bar. It is likely that
bers, also known as health IDs, allow- quoted above. This will be a first-of-its- even private wards in government hos-
ing parents to track their children's kind policy focusing on mental health, pitals will be made available under the
health records. said Rajesh Dalmia, partner, EY India. scheme.
The Insurance Times, June 2022 13