What is the Importance of Micro Health Insurance?

Healthcare Insurance is no new concept in India. It has provided protection against uncertain medical emergencies to many families. But, the reach of such services is still limited to urban areas and middle-income or higher-income households. To provide insurance services to the low-income group, a concept called micro health insurance is introduced. This blog will talk in detail about the topic and will help you build an understanding of the same.

Importance of Micro Health Insurance

The rural Indian community comprises a whooping 68.84% of the aggregate population according to the 15th census of our country. A very huge segment from the Indian population remains underprivileged. They lack the capacity and access in order to gain benefit from all the financial services like banking, credit, insurance, etc. due to this. This is exactly where concerned authorities need to step in, in-order to empower such sectors of society and granting them the access and availability of financial services and products.

Micro health insurance is such an effort to aid people coming under the group with low incomes. This population earns their bread through farming and by means of doing small activities and businesses. The issue of concern here is that the rural families are more prone towards illnesses since there does not exist much awareness among the people. Whenever any medical emergency comes up, the family goes through a hard time to tackle any disease or illness as they are not able to afford quality healthcare and medical services.

Especially in the current scenario where we are swarming our way through such a dangerous pandemic like the COVID-19, the importance of health insurance policy in the form of family health insurance plans and individual health insurance plans is highlighted. Such a health micro insurance is designed specifically keeping in mind the rural population of the country. Intensive planning is included for individuals from the rural areas in such a micro health care plan.

Understanding Micro Health Insurance

The government of India has been working on healthcare services to serve the Below Poverty Line people; one such initiative is micro health insurance which is specially designed to help the low-income group with little or no savings. It is focused on providing high-quality healthcare insurance facilities at affordable prices. With such type of healthcare insurance, an individual with a limited income can avail of good quality healthcare services by paying a minimal premium annually.

Features of Micro Health Insurance

• Provides a limited sum insured, which ranges from 1 lakh to 5 lakhs.

• Is highly affordable.

• Covers all the family members.

• Does not require prior medical check-ups.

• Gets regulated by IRDAI.

Types of Plans for Microinsurance

Microinsurance plans may be distributed into these two following broad categories. This will help you to choose right health insurance while buying a health insurance plan.

1) General Microinsurance

Regular or general microinsurance products may cover personal accidents, health insurance, and assets with the inclusion of hut, livestock, etc. it is possible to avail this product as a group as well as at an individual basis.

2) Life Microinsurance

Life plan of microinsurance can be an endowment or a term plan. It may be availed as a group as well as at an individual level and may or may not be accompanied by any accident benefits. Such plans could also be with respect to health insurance.

The most lucrative and eye-catching benefit of such insurance is the lifelong benefit of renewal.

Benefits of Microinsurance

Aside from the features already mentioned above, following are the benefits of health insurance:

• A provision of providing coverage for pre-hospitalization charges and expenses is provided by such health insurances.
• Even after completing the purchase of insurance, there exists a documentation procedure for claiming the insurance. This insurance policy ensures that one doesn't have to suffer the unnecessary hassle from such tiring and tedious procedures as it makes the release of post-hospitalization expenses easy.
• The micro plans also provide coverage for daycare treatments.
• There are certain groups of individuals who cannot even afford the expenses of an ambulance. These insurance plans make sure to cover the cost and charges of an ambulance via their scheme.
• Majority of health insurance plans and policies in our country have network of clinics and hospitals to facilitate the insurer in times of an emergency.
• Having a mediclaim policy will also allow you to use the cashless option and make easy settlements of transactions as well as claims.

Reasons to opt for a Micro Health Insurance Policy?

Goal based Planning of Finances

Understand and accordingly decide right at the beginning when you buy medical insurance. In case your prime financial goal has to be saving or security, then you should be purchasing the best health insurance product which helps you in achieving one of them or both.

Premiums are Affordable

Investing in a tool of micro insurance will get you the best deal for a win-win situation by providing affordable health insurance premiums as well as savings, all in one single offering.

Benefits from Tax

Take advantage of tax benefits which come with the premium invested and also their maturity, in accordance with the Section 10(10D) and Section 80C as per the prevailing laws for income tax. The premiums paid are exempt from GST (Goods and Services Tax) as well, however it is subject to changes as per the tax laws.

Conclusion:

With the rising cost of hospitalisation and sudden increase in the number of diseases, it is really important to take care of people who can not afford it. Microinsurance scheme has bridged the gap between good health services and affordability. Awareness about such schemes can impact the lives of many people and can shape the healthcare sector in a better way.