Page 305 - Ebook health insurance IC27

Sashi Publications

and dies immediately. However, in some situations, it is difficult to determine the efficient
cause of the loss, and arbitration may be employed or courts may be called upon to
decide. Often we can establish very quickly what the initial event and the last event. The
difficulty arises in deciding if there is a direct chain of causation between them, or whether
some new force has intervened to supersede the initial cause of the event bringing about
the ultimate loss (a medical bill).

Section 3

Historical development

The medical insurance (sickness cover) was originally developed in 1930's as an extension
to Personal Accident policies for employee group benefits. It originally compensated
members for income lost because of absence from work due to illness. From this
development it emerged the idea of full medical schemes, similar to those currently
available, firstly through Blue Cross- Blue Shield organizations in the USA, BUPA in the
UK and many other insurance organizations that followed.

Medical insurance has generally flourished most in those territories with little or no state
health services. It now contributes towards a major part of personal and overall national
health care expenses.

Q. Where is the current largest medical insurance market in the world? And
why?
A. United States. Mainly because there is no extensive state health services available.

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