Wednesday, August 25, 2010

Health Insurance in India Part I

In mid 80’s most of the hospitals in India were government owned and treatment was free of cost. With the advent of Private Medical Care the need for Health Insurance was felt and various Insurance Companies (New India Assurance, National Insurance Company, Oriental Insurance & United Insurance Company) introduced Mediclaim Insurance as a product.

According to recent news report health insurance continues to be the fastest growing segment with annual growth rate of 25%. Health Premium has risen to Rs. 8100 crores in 2009-2010. As per the recent reports from various agencies the health sector has the potential to become a Rs. 30000-crore industry by 2015. Estimates of leading Chambers of Commerce also confirm these estimates.

On August 15, 2007 Prime Minister had announced Rs 2000 Crores for Health Insurance for poor citizens and the impact of the same is being seen by us in the form of success of RSBY (Rashtriya Swasth Bima Yojna).

In 2001 with entry of various private Insurance companies now the customers have choice of buying this insurance from 21 Insurance companies.

The Companies, which offer Health or Mediclaim Insurance, are;

  1. Apollo Munich Insurance Company Limited
  2. Bajaj Allianz General Insurance Co. Ltd.
  3. Bharti AXA General Insurance Co. Ltd.
  4. Cholamandalam MS General Insurance Co. Ltd.
  5. Future Generali India Insurance Co. Ltd.
  6. HDFC ERGO General Insurance Co. Ltd.
  7. ICICI Lombard General Insurance Co. Ltd.
  8. IFFCO Tokio General Insurance Co. Ltd.
  9. Larson & Toubro General Insurance Co. Ltd.
  10. Max Bupa Health Insurance Co. Ltd.
  11. National Insurance Co.Ltd.
  12. New India Assurance Co. Ltd.
  13. Oriental Insurance Co. Ltd.
  14. Raheja QBE General Insurance Co. Limited
  15. Reliance General Insurance Co. Ltd.
  16. Religare Health Insurance Co. Ltd.
  17. Royal Sundaram Alliance Insurance Co. Ltd
  18. SBI General Insurance Co. Ltd.
  19. Shriram General Insurance Co. Ltd.
  20. Star Health and Allied Insurance Company Limited
  21. Tata AIG General Insurance Co. Ltd.
  22. United India Insurance Co. Ltd.
  23. Universal Sompo General Insurance Co. Ltd.

India is the only country where hospitalization insurance policy was being sold as Mediclaim Insurance Policies. The very name gives a feeling to the insured that claim has to be lodged. If motor insurance policy is not sold as motor insurance claim policy and household insurance policy is not sold as household claim policy then why this be named as Mediclaim?

In the recent years the trend has emerged that some Insurance companies have started calling this product as Health Insurance.

Health Insurance and Mediclaim are two different names for the same product. The change has started coming and now we have started calling it Health Insurance. ICICI Lombard has even named it as Health Insurance Policy.

Calling is as Health Insurance is a positive way of looking at this Insurance. It also giving us a feeling that we as a society have started moving from curative medical care to preventive medical care.

According to sources in Oriental insurance it is being felt that mindset has started changing over the last couple of years “ The new middle- class of of India aspires for quality healthcare service and doesn’t mind going to expensive hospitals like Apollo or Escorts. There is no reason why healthcare insurance should not be successful with this class.
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  1. It is good to find out that India is becoming richer and more and more people can afford health care and financial services.

  2. Ya I agree with Trading News, but if we see the Indian scenario specially in Insurance sector its very pathetic. Even the market share grown up.

  3. Health insurance is the major part in the country which must be done. Hence to secure the future we must do health insurance.