Athif Abdul Azeez

INSURANCE

India spends about 6.5% to 7% of GDP on Health care.

Out of this 1.5% is in the Govt. Sector and 4.7% in private sector.

Provision of Health care in the Country is the shared responsibility of the Centre, State and Local Governments.

Includes beneficiaries covered under ,Army, Railways,self funded,PSUs and Insurance products.

Most of the health care providers in the country are in private sector and are on fee for service basis.

Indian Scenario

Shriram General Insurance first insurer to buy company abroadShriram General Insurance has become the first private insurer to make a foreign acquisition with the purchase of a large chunk of share in Philippine non-life company Monarch Insurance. This is the first overseas insurance transaction after the insurance regulator in May 2013 allowed domestic companies to do business in other countries. Life insurance sector sees uptick in growth in Q2Insurance Regulatory and Development Authority (IRDA) member (life) Sudhin Roy Chowdhury said the life insurance sector has seen an uptick in growth in the second quarter of this financial year (2013-14) after three consecutive years of slump.

 

Many articles and Government of India’s document on the subject reveals starling facts about the state public health and the health insurance scenario in India. Some of them are: 71% of all deaths are due to Cancer,Health

attack, Stroke and renal failure. About 7 million people in India suffer from

one form or other heart ailment. Out of this 10% need bypass surgery. Treatment for all these ailments costs

between Rs. 3 Lakhs and Rs.5 Lakhs, which is beyond the reach of middle class population

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Problem area is after retirement. Some charitable trusts or individuals try to

contribute in the delivery of Health care to the needy people.

Traditionally, Indians have been a close knit society. In cases of illness the earlier joint family system, tendered to give best of the comforts to the sick persons – cost of giving such care was not an issue.

With the change in times all that have changed. Expensive hospital , expensive treatments and

medicines have come to stay.

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Span of life increasing. More serious diseases occur during old age

I.e between 60 & 80years This age group is without any Insurance

cover back up. No social Security scheme of Government

for providing healthcare treatment. Tremendous escalation in the Cost of

treatment People needs to make provision to manage

the economies of scale needed to manage the health of the entire family. Hence the need for health insurance arises.

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Some concerns,issues and challenges: Low level of awareness. Pre existing conditions and other

exclusions. Up front payment to hospitals

Reimbursement policies

Claims procedure Service standards. High Claims ratios Over utilisation of services.

Issues and concerns

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