Health Insurance Awareness in India & Problems Associated with It

India is home to approximately 1.4 billion people. There’s a preconception that spreading health insurance awareness in India is not that daunting, given there are human resources. However, this is not the case. Indians do not welcome insurance, even if it gives them benefits. For example, a very small portion of people prefers to get insurance while purchasing a motor vehicle.

 

Hence, health insurance awareness is a significant problem in India. People consider health insurance as an expense. Even though health insurance is one of India’s fastest-growing service sectors, only 15% of the population is interested in a health insurance plan. However, recent trends indicate that awareness of health insurance is rising more slowly.

 

Importance of Health Insurance

In the 21st century, everyone’s lifestyle has changed. A lifestyle change also means a change in health. People are now more prone to viral infections and other diseases. The past two years and numerous Covid-19 variants taught us that health should not be taken for granted. Imagine another situation like Covid-19, where the world is in lockdown, and you have no source of income, but you are hospitalised. How are you going to pay for the hospital expenses? If you have health insurance claims, then life can get a lot better.

 

Like, most of our savings are spent on rising pre and post-hospitalisation expenses today. This is where health insurance benefits you. As most medical expenses get covered under the health insurance plan, it is primitive to buy health insurance. Not just this, there are several health insurance benefits like cashless claims, tax benefits, alternative treatment, additional coverage, etc.

 

Health Insurance Awareness Problems

Health is wealth. Still people of India, due to various reasons, are reluctant to buy health insurance claims. Despite the number of health insurance benefits, several factors are responsible for the health insurance awareness problems. Below, we have cited some health insurance awareness problems.

 

Misconception of People Regarding Health Insurance

People do not consider spending their money on insurance, instead are more interested in investing. One of the main misconceptions that people have regarding health insurance is that health insurance is not essential and is an unnecessary expense. People realise the seriousness of health insurance only at times of utmost need. Also, people have this misconception that often health insurance claims are rejected. Contrary to this, in reality, health insurance claims are approved upon raising according to the terms and conditions of the health insurance plan.

 

Poverty

According to United Nations data, almost 28% of Indians are believed to fall under the poverty line. Poor people have more crucial issues like the need for food, shelter, education, and sanitation; buying health insurance is the least of their concerns. Poor people have limited income and prefer to spend money on food and other necessities. Opting for health insurance is not on the priority list of this section of people.

 

More Number of Public Hospitals

India has a more number of public hospitals than private hospitals. Public hospitals run on government funds and do not have more hospitalisation expenses. However, in private hospitals, there are a lot of advanced technologies and modern machines, even though there are incurring hospital expenses. Even private hospitals encourage patients to opt for health insurance that can cover most of their expenses. On the other hand, public hospitals do not do this, which is why most of the masses face health insurance awareness problems.

 

No Health Insurance Awareness Policies

In India, there are no effective policies regarding health insurance exists. Although literacy rate has increased, still a small proportion of Indian population is illiterate. Illiteracy is not limited to rural areas but is also present in cities. Therefore, particular health insurance awareness policies must be planned and implemented so that even illiterate people can know more about having a health insurance plan. Insurance Regulatory Development and Authority of India (IRDAI) have implemented many plans to bridge the gap between people’s lack of awareness and buying a health insurance plan. Still, there’s a long way to go.

 

Lack of Healthcare Facilities in Rural Areas

Poor and rural people have limited access to healthcare. Even in rural areas, people don’t have any basic idea of insurance. Health insurance, as a term, is foreign for rural people. This is mainly because there’s a lack of proper healthcare facilities in rural areas. Insurance branches are limited to urban and semi-urban areas. There’s no insurance branch in a rural area, so the people of that place are unknown to a health insurance plan.

 

Solution For Increasing Health Insurance Awareness

The importance of health insurance awareness in India is one of the most pressing concerns for the country. Government, healthcare professionals and health insurance companies should come together and educate people about the utmost importance and health insurance benefits. Public hospitals should tie up with several insurance companies to educate the people more about the growing need for health insurance.

 

Policies should be implemented so that health insurance awareness can be maximised. The government should implement a free health insurance plan to attract people from economically weaker sections. In 2008, GOI launched Rashtriya Swasthya Bima Yojna, which covers the medical expenses of people falling below the poverty line. Bima Bemisaal is an awareness program launched by the IRDAI to inform people of the importance of taking up a health insurance plan.

 

Health Insurance Schemes Launched by the Government of India

 

• Ayushman Bharat Yojna
• Care Health Insurance
• Central Government Health Scheme
• Pradhan Mantri Suraksha Bima Yojna
• Rashtriya Swasthya Bima Yojna
• Bhamashah Swasthya Bima Yojna

 

Conclusion

Although many people are not yet open to the idea of opting for health insurance plans, the right health insurance awareness policy can also help tackle this problem. The best health insurance always comes in handy. Also, in today’s times, buying health insurance is not difficult. You can simply buy health insurance online. However, evaluating the health insurance premium is vital before buying a health insurance plan. Click here to know more about the best health insurance plan.