Page 373 - Ebook health insurance IC27

Sashi Publications

3. Risk reduction
4. Risk retention
5. Risk transfer

In health care perspective the risk management principles is equally applicable.

One must identify the potential hazards that he is exposed to. Identification is very
important as most people fail to recognise the risks. For Eg Smokers. They fail to
recognise the risk that if they continuously smoke cigarette they will have the risk of
cancer or associated health problems.

The next step is to avoid the risk. Once the risk is identified and the person knows that
he can suffer due to particular risk he must try to avoid it. This will save him from the risk
of contracting diseases.

However if complete avoidance is not possible he must try to reduce it. For Eg. If a
chain smoker is unable to leave smoking cigarette he must try to gradually reduce its
consumption so that chances of contracting disease lessens.

As we say Habits Die Hard. Even after knowing the risk of contracting diseases some
people take it lightly and leave the matter on fate or god. This refers to retention of risk
which is not at all advisable.

The last step in risk management is Risk transfer. Risk can be transferred by purchasing
a health insurance policy. Now a days variety of insurance products are available in
the market. One can take pure health insurance product or specific disease related
products.

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