Page 50 - The Insurance Times September 2024

8. HSA (Health Savings Account): A tax-advantaged on the conditions of your plan, the insurance company
savings account, also known as an HSA, enables you to agrees to pay for some or all of your healthcare
set aside money before taxes to cover certain medical expenditures.
expenses.
You usually see a doctor or healthcare provider in your
9. Preferred Provider Organisation (PPO): A PPO is a type
insurance plan's network when you require healthcare
of insurance plan that offers more flexibility in choosing services. Specific treatments may be subject to a deductible,
healthcare providers. You have the option to consult in- copay, or coinsurance under your insurance plan, while
network and out-of-network providers, although out-of- others may be covered entirely. Your plan's out-of-pocket
network treatment may be more expensive.
maximum usually caps the amount you pay for covered
10. Exclusive Provider Organisation (EPO): An EPO treatments.
hybridises Health Maintenance Organisation (HMO) and
PPO plans. Like an HMO, you generally need a Primary When you accept a medical bill, your insurance company is
Care Physician (PCP) and referrals, but you may have generally the first to be billed. They will then pay half the
some coverage for out-of-network care in emergencies. bill, leaving you to settle any excess amount.
11. Explanation of Benefits (EOB): An EOB is a document Conclusion
from your insurance company that describes a
healthcare claim, including the services delivered, the Healthcare insurance is essential for safeguarding your
amount invoiced, and the part covered by your insurer. health and giving financial protection against medical bills.
You can manage the complexity of health insurance more
How Does Healthcare Insurance Work? confidently if you grasp basic concepts like premiums,
deductibles, copayments, and networks.
Healthcare insurance works by giving financial security as
well as access to healthcare services when they are required. Feel free to contact insurance providers who can offer helpful
When you sign up for healthcare insurance, you must pay a advice and assistance in locating the best healthcare
premium to the insurance company. In exchange, depending insurance plan for you.

Nagaland Renews Parametric Insurance for Enhanced Disaster Protection
Nagaland, a mountainous state in northeast India, has renewed its groundbreaking parametric disaster insurance
program, reaffirming its commitment to safeguarding critical infrastructure and ensuring rapid financial response to
natural catastrophes. This makes Nagaland the first state in India to adopt such a measure, showcasing its proactive
approach to disaster risk management. In a significant development, Nagaland has signed a Memorandum of Un-
derstanding (MoU) with SBI General Insurance to continue its parametric insurance coverage. This renewed agree-
ment is supported by reinsurance from global giants Munich Re and GIC Re, ensuring the state's protection against
natural disasters like floods, landslides, and droughts.
Nagaland initially introduced parametric insurance in 2020 with Swiss Re and Tata AIG General Insurance Company
Limited. The current renewal marks a shift to SBI General's Disaster Risk Transfer Parametric Insurance Solution
(DRTPIS), a product designed to offer swift financial aid following natural disasters. This product, now adopted by
the Nagaland State Disaster Management Authority (NSDMA), is hailed as a revolutionary step in the state's disas-
ter management strategy. Chief Minister Neiphiu Rio highlighted the importance of this insurance solution, stating,
"The State Government and SBI General signed a Memorandum of Understanding (MoU) for a Disaster Risk Transfer
Parametric Insurance Solution (DRTPS), making Nagaland the first Indian state to implement this disaster manage-
ment insurance. This parametric multi-year risk transfer solution will protect the State's critical infrastructure and
reduce economic losses due to disasters."
The renewed agreement spans three years, with the Nagaland government bearing the cost of premiums. This in-
surance solution is particularly crucial for Nagaland, a region highly vulnerable to natural calamities, and represents
an essential step in India's broader efforts to mitigate the economic and human impacts of natural disasters. By
continuing this parametric insurance coverage, Nagaland not only strengthens its resilience against natural catas-
trophes but also sets a precedent for other states in India to follow, ensuring swift and efficient financial support for
recovery and rebuilding efforts.

The Insurance Times September 2024 45