Medical Insurance

There were numerous government hospitals in India during the mid 80’s and most of these hospitals provided free treatment. But, the situation is quite different presently because of the rise of private healthcare organizations. Hence, Medical Insurance also marked is entry in India. There are several health insurance companies that have brought in Medical Insurance as a product in India. This is one of the fastest growing section were the growth rate is more than 55% in a year. In 2006-2007, the premium of medical insurance was around Rs 3,300 crores and the figure is expected to exceed Rs 25,000 crores by 2010.

Why Medical Insurance is needed?

Medical insurance work as financial covering to the person who have insured his/her health in case of any injury or illness that may arise in future. According to the study conducted by Money Digest in 2003, one out of three persons has a chance to develop life threatening cancer; one out of four person ha a chance to get heart diseases; and one out of twenty persons got a chance of stroke before crossing 70 years of age.

Apart from that, there are other factors as large percentage of Indian population cannot arrange instant cash when the requirement strikes. As per World Bank Report, 85% of the population who are working is unable to arrange Rs 5,00,000 of cash instantly and 14% have the liquid cash but will face huge financial crisis after spending the amount. Only 1% Indian can arrange instant cash without any problem.

Medical Insurance coverage in India

Medical insurance in India covers hospitalization fees ff the patient, if he/she is admitted in hospital for 24 hours or more for accident, illness, surgery or other essential factors. Expenses for pre-hospitalization, post-hospitalization, intensive care expenses, nursing expenses, and expenses for medical practitioner, consultants, specialists, surgeons, anesthetist, etc are covered by medical insurance policies.

Other vital expenses covered by medical insurance companies in India are organ costs, artificial limbs, pacemaker costs, dialysis, radiotherapy, chemotherapy, blood oxygen, drugs, surgical appliances, operation theater charges, etc.

Some of the major players of medical insurance in India are New India Assurance, National Insurance Company, Bajaj Allianz General Insurance Company Limited, Oriental Insurance & United Insurance Company, Apollo DKV Insurance Company Limited, Bharti AXA General Insurance Company Limited, Cholamandalam MS General Insurance Company Limited, HDFC General Insurance Company Ltd., ICICI Lombard General Insurance Limited, Reliance General Insurance Company Limited, Royal Sundram Alliance Insurance Company Limited, etc.