A Paradigm transformation in the Health Insurance Industry

Involvement of technology is evident in almost every industry including the Healthcare, the emergence of the Internet of Things (IoT) is the prime reason for this major role of Internet and Technology. This integration is extremely rewarding and the benefits are not only limited to the Health insurance sector.

There are certain aspects in the Health insurance in India which is having the potential of improvement and requires consideration of several aspects. Even when the industry is experiencing a rapid growth, the practice of old methodologies of the health insurance practices at times lead to the prolonged intervention with the patients. This is a common practice which is experienced by many.

Technology has enabled access for everyone and now even minute details related to a subject can easily be investigated and examined. As a result of data explosion, digitalization, and the increase in demand for instant information, integration of technology has become an unavoidable requisite for every business and service provider.

 

Integration of technology in the health insurance sector has also changed and ameliorated many traditional practices and there has been a continuous innovation in the process of offering the best experience of having a health insurance. The innovation has already reached a level where, in certain parts of the world, even the facial expressions during the live video calls are used to assess and evaluate the credit risks. Health care solutions and Health Insurance industry have experienced a rapid and exponential growth because of this digitalization of the process and massive availability of potential data.

There is a huge absence of the availability of medical facilities and other medical solutions in the rural areas of India where majority of the population resides and as per the surveys, there are only 2% of the Doctors available to them. In all these areas, every form of the medical solution is completely dependent on the schemes funded by the government and at times there is a compromise of quality and the delivery of the services through these schemes. Another major problem is the absence of the social determinants of the basic healthcare such as nutrition, food, water, etc.

With the encroachment of the health insurance facilities, the system has improved and with the integration of the technology, there has been a significant change in the practices and it is now easier and more convenient for people to make justified use of all the government schemes related to the health care.

Health Insurance industry has experienced a huge transformation in the recent times and is expected to have a greater rise in the quality and outreach in coming future.

 

Factors for choosing a Health Insurance

Right from its foundation, concept of Health Insurance has always been an important aspect of not only securing the future from the sudden health crisis which may eventually lead to a huge financial burden or even bankruptcy but it is also considered as a very favorable area of investment and has a significant role in maintaining the economic stability.

Opting for a right and suitable insurance plan can be onerous and may include a lot of research work to determine the absolute suitability as per your income and future plans. There are a plethora of companies who have multitudinous plans for you with different premium plans, following factors may be considered before making a decision on the same:

1. Premiums: One of the most important factors that are taken into huge priority is the premium amount. If you have a business setup, this is the first thing that the employees notice and this should be shared with them as they make a contribution in the same.
2. Available Options: One should consider all the plans available and contemplate the options before choosing any plan. Plans differ in the premium options, secured areas, and other miscellaneous deductibles, therefore, proper research work is very important.
3. Fundamentals of Coverage: This is a major factor for any plan that you choose, the prime question is that what sort of coverage does the plan has to offer? To ensure that your plan has everything to offer that you need, you must read the documents carefully and inspect every detail of the mentioned points.
4. Other Deductibles: After the premiums, this is the second most important factor that needs our undivided attention. Deductibles affects the budget of everyone and hence, people pay a very close attention to what sort of other deductibles are present while opting for an ideal health insurance plan.
5. Prime Objective: The main reason why you pick up a health insurance plan is to safeguard you and your family from the expensive medical fee and treatment costs. Usually, plans do cover many areas that you may not need so it is better to exclude those sections, for example, if you do not need any dental or eye coverage, make sure you get to customize your plan accordingly.

A complete medical insurance does protect from a lot of unforeseen troubles but a scrutinized look should be given to the plans before finalizing it and one must be open to seek the advice from others and be willing to consider their suggestions too.

Evolution of Health Insurance in India

Health Insurance in India is one of the most prominent industries where according to the surveys conducted in the year 2011, nearly 3.8% of India’s GDP was used up in the Health Sector. The evolution of the Health Insurance is also quite a learning experience where the identification can be divided into three distinct milestones to enable the ease of understanding.

The first period was before the Independence where the Life Insurance was started and began to evolve, the second phase was the early few decades of the Independence where Life insurance gained popularity and the concept of Health Insurance was understood as the Government-sponsored programs and the last phase was when the Health Insurance experienced maximum growth primarily because of the liberalization of the economy and awareness in general masses.

The growth in the last phase was significant and as per the surveys, more than 25 percent of the total population in India had marked their presence and had access to the Health Insurance.

When we analyze the evolution of Health Insurance in India, we can easily identify that Life Insurance was the precursor of Health Insurance and the prime reason for the growth of Health Insurance was the growth of the economy and a clear understanding of the health insurance benefits by the public.

Insurance in India was started in the year 1818 by the Oriental Insurance company in India although this was only meant for and limited to the European community yet the concept was incipient in India and a year later after the foundation of Indian Medical System, Bombay Mutual Life Assurance Society began the offering of Life Insurance for Indians too but at a higher premium rates as compared to the British people but the twentieth century witnessed an emergence of many insurance companies in India. The National Insurance Company came into existence in the year 1906 which is the oldest insurance company in India that exists till date.

Life Insurance Corporation which came into existence in the year 1956 was the main reason for the nationalization of the Life insurance.

The initiation of the opening and exposing of the Health Sector was done during the economic reforms in the year 1991.

The government of India also took a major step in the year 2003, when they launched a Universal health Insurance to ensure that the insurance can also reach out to the untouched mass of below poverty line.

The health insurance industry has evolved through many phases of development and there is still much room for development as many published case studies do suggest that there is a possibility of improving the regulation and transparency of the private Health Insurance but with the growth of the sector, the industry is going to witness extreme growth in near future.

Importance of Health Insurance

A good health can be the most productive asset for any individual. Be it the physical or mental health, it is important for us to stay healthy in order to accomplish our daily tasks and goals. Having a good health is nothing but practicing right kind of a lifestyle which primarily includes having the right diet, the right amount of exercise and the right amount of sleep.

A good health is something that we all enjoy but in the today’s era of modern lifestyle and hectic routine, it becomes very difficult for most of us to pay a proper attention to our health including our eating habits and as a result of which, we end up having several health issues. Our habits not only affect our body’s health but it also hampers our mental health and the signs of which we can experience in the form of insomnia, stress and severe headache.

It is important for us to maintain a proper balance between our lifestyle and our work but it is also very important for us to have a health insurance as there has been a huge rise in the prices of treatment and other medical services.

Having a proper and consistent health insurance is of extreme importance for multiple reasons including the advantage of enjoying healthcare benefits. Uninsured people get less medical care and also the absence of a standard insurance may lead to a great financial burden on the entire family. Health insurance may take multiple forms but they have all got some common features which can help you easily understand what are you covered for.

A health insurance relieves you from the uncertainty of financial burden which could have otherwise been an impediment for you and your family. Apart from all the benefits that an insurer has to offer, it also ensures a stability in your family, in your business and also in the economy.

When things go right in your personal and business life, the time correct for you to have a health insurance because that is when you can efficiently take financial decisions about investments and savings. Insurance does provide an investment channel where the payment of premium amounts not only enable you to have a systematic saving but also the maturity amount gets you a hefty amount.

Medical insurance acts as an ozone to protect you from any fiscal issues because of unforeseen illness and unanticipated disease. Because of all the benefits that a proper medical insurance can offer to you and your family, it is considered to be of immense importance.