No-frills insurance is here to aid government’s enclosure drive
Finance requested public companies general insurance to accelerate the introduction of no-frills health insurance products for the poor of India part of its agenda to make financial inclusion for the masses.
The Ministry believes that the no-frills products will help provide affordable health care to a larger population.
There are four public and 20 private insurance companies generally registered with the Insurance Regulatory Authority and development, but offers a basic health insurance that covers only the most widespread diseases.
“We had a good start no-frills bank accounts and the cost of the new pension system is reduced. This is not an ordinary insurance system to increase the product package, pre-integration agenda,” the Ministry of Finance official said.
No frills product is available in a smaller fee, because it leaves a small probability of disease. It would also impose limits on compensation to ensure that hospitals do not overload the system in accordance with the patient.
According to some estimates, is between 60 and 70 crore people in India who have no medical coverage. Insurance companies have realized the business opportunities in this segment, the R-70 000 crore by way of insurance premiums. At least two insurance companies are in various stages of the launch of the basic policy will cover this group.
“We worked on this, and we hope soon to get the necessary approval of insurance regulators,” said RK Kaul, President of the Oriental Insurance Company. The business of public sector general insurance plans to put a ceiling on fees to cover specific diseases or medical procedures.
“In our policy, about 40 diseases covered, but there will be a limitation on total taxes by the disease,” Kaul said, adding that most are insured to the best hospitals, without realizing that they exhaust their insurance money faster if they approach a hospital advanced.
“A hernia surgery can be performed in a hospital in the intermediate level for about Rs 20,000 and Rs 50,000 in a super specialty hospital,” Kaul said. “In a no-frills policy, it will be limited to say Rs 20,000.” New India Assurance is another public sector general insurance company is working on a similar product.
“We’re looking at 15-20% less premium and there will be many ways and people of low income group who are looking for a similar product,” an editorial in the New India Assurance said, adding that the product covers cataract dialysis and swine flu among other conditions and procedures.
Eastern Life Insurance, Kaul says, no-frills health insurance is a turning point. “There will be no limits in emergency situations, and the insured will receive the desired fold,” he said.
Source: [ET]
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