Page 68 - Ebook health insurance IC27

The Insurance Times

them. However, they will have to be careful about the moral hazard that may
arise.

(h) Investment Products and Health Saving Account - Another concept might
take off soon are Insurance Linked Savings Plans, also known a Health Savings
Accounts (HSAs) or Medical Savings Accounts. These plans are widely used in
Singapore and China. A deferred indemnity product called ' Bhavishya Arogya'
is already being marketed in India since the 1990s.

This is basically a hospitalization product, which can be used in younger ages to
provide health protection at older age. Life Insurers have also recently launched
products with Health Savings components, and this may be popular in the future.
The unutilized portion of the premium, which is not used for risk coverage doesnot
lapse, and accumulates, and could be part of the solution to the challenges faced
by Senior Citizens in obtaining affordable health insurance.

Practically, HSAs can meet costs of frequent low cost episodes of illnesses and
are usually combined with the protection of a high deductible health insurance.

(i) Senior Citizens' Products - Nowadays, specific products have been designed
to meet the needs of senior citizens, by both public sector and private sector
companies. Some of them even allow entry at the ripe age of 80, and almost all of
them allow continuation till 90 or 100 years. These products incorporate cost
sharing features like co-payments and sub limits to keep the claims, and hence the
premiums lower than standard hospitalization product of same age band.

(j) Micro-insurance products - These products usually come with small premiums
and are aimed at rural and informal sectors. Typically, the sum insured is

7 2 Guide for Health Insurance