Tech Trend and Health Insurance Industry

With reference to the recent statistics based on the surveys conducted, Indian economy continues to have lesser density of the insurance sector and primarily this ratio is defined and driven by the rural areas of the nation where the access to these financial and health institutions are not well constructed and there is a limitation to the outreach of these facilities.

The paradigm shift of the population towards the technology has given a hope of success to the organization as the industry has now figured out a way of increasing their reach and enhance the customer experience.

Companies are now emphasizing on the use of latest technologies to create the infrastructure of the digital insurance sector. Major technologies that are playing a vital role in this transformation are:

1. Cloud Computing
2. Advanced Digital Analytics
3. Mobile Internet
4. Internet of Things
5. Artificial Intelligence
6. Social Media Platforms

The increasing use of technology has redefined the company-customer relationship. The health insurance sector has also witnessed a great rise in this department. The account details, payment details, policy expiration update and several other data can now be sent using the technical alternatives and these steps also make the conversation more personalized and bring the parties together.

Regulation of the data and customization of the products using the technical tools has enabled the consumer to pick up a policy of his own preference and this has significantly attracted the consumers towards the insurance market.

Insurance is a very important sector for any economy and over the years, the use of this investment has proliferated. There are many reasons behind this sudden rise including the increase in the price of medical facilities but the prime reason was the technical advancement and technical tools which also served as a weapon to increase the awareness among the people so that they opt for the insurance and secure their family from any unforeseen trouble and financial impediments.

The market condition suggests that people look for inspiration and personal connection before choosing their medical insurance and the technical platforms have enabled the companies to reach out to the crowd and target the untouched areas which primarily are the rural areas of India. Generating the awareness among the people is a great target and challenge for the companies and based on the data that shows the recent development in the industry, one may state that the health insurance companies are somewhat successful in penetrating into the market and with time this development will increase to benefit the sector.

Medimanage insurance is one such insurance provider that incorporates all the latest technologies to ensure that the insurance sector reaches out to maximum people. We understand the requirement of people and design our plans accordingly.

 

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.

Health Insurance Policy and its Care Coverage

Life is all about experiencing the best of it in doing anything. Health insurance understands the importance of these experiences and that such experiences can rejoice in true sense only when every individual is healthy and does not worry about the unforeseen medical problems.

The primary objective of a health insurer is to ensure good health to all its clients and eradicating their worries of probable health uncertainties which may arise in future. A health insurance plan helps you to safeguard you as well as your family against medical and financial risks. The insurer takes care of the hassles related to the client’s treatment so that he/she may stay away from all worries and could focus on their recovery only.

Care Coverage:

• Pre-Hospitalization coverage: All the procedures through which you undergo before your finally reach the hospital like investigative tests, routine checkups etc. are highly expensive. Such medical expenses are the coverage plans of a good health insurance policy.
• Ambulance coverage: To get a medical attention as soon as required is of utmost importance. That is why the expenses incurred while using the services of road ambulance during or before your hospitalization is also reimbursed by good health insurance policy. 
• Hospitalization for more than 24 hours: All the nursing plans. Surgeon’s screen, anaesthesia, doctor’s fee, OT charges etc are usually paid by the insurer.
• Hospitalization for less than 24 hours: The expenses incurred in providing you one daycare are also covered under health care procedures.
• ICU charges: In case of emergencies, your primary focus should lie on your recovery. Your agents are there to look after your treatment expenditures.
• Lifelong renewability: A good health insurer will never leave you in the middle of your journey and honour his commitment by providing lifelong renewability schemes to renew your policies.
• No age limit for enrollment: To enrol into a health care plan, there should not be any age limit.

It is now recommended to buy online mediclaim policy that offers you healthcare products to individuals, family and even to corporates. Health insurance is a new concept and has made a significant progress in a very short period all because of the security schemes it offers. To buy online mediclaim policy is a good option as you can compare which policy is best to hold, also, it reduces paperwork and unnecessary formalities.

 

How does a mediclaim plan work?

Before you buy an online mediclaim policy, you must know the procedure of its working. The claims are of two types- cashless procedure and other is reimbursement. While you buy an online mediclaim policy, go through each policy and make a comparison to go for the one which suits your need the best way.

Cashless Procedure:

It is that type of mechanism, where the patient is admitted or treated in our network of hospitals and thereafter the insurer will settle down the claim, either a part of it or full with the concerned hospital. This means that the patient needs not to give even a single penny to that hospital. For a smoother claim process, follow these steps:

At first, in all the empanelled hospitals, you will find an insurance desk within the hospital premises. The policyholder should obtain from there the pre-authorisation form, fill it duly with all your correct details as any wrong information or any omission will delay your entire claiming process. The form is stamped by your hospital and the company approves your assured sum and thereafter a fax is sent back to the same hospital stating that an amount ‘X’ is sanctioned for treatment.

Reimbursement:

If you want to get reimbursement, you should inform your insurer about your hospitalisation or if the hospitalization is likely to happen in near future. Either you send an email or inform by making a phone call. For acquiring reimbursement, submit all your payment receipts, medical bills of all medicines even if bought from an outside chemist. Make sure to get your original discharge slip, slips of final payment of bills, so that reimbursement can be given to the person.

Checklists before you buy a mediclaim plan:

• Individual plans and combo plans for the family: In an individual plan, every individual should be insured for a specific sum, whereas in a family floater, all family members are insured against a fixed amount. In some plans, if the primary person of the family dies, under the family floater scheme, the policy will be closed and even the young members of the family cannot renew it. Whereas, In some cases of individual plan, the individual can be insured on different parameters. But the attainment of specified age will not have any impact on the coverage plans of family members.
• Renewability Age: Although the policy offers you the coverage for just a year, in actuality some insurance providing companies like Medimanage believe in strong and long-lasting relationships with their customers. So the insurance policy will cover you for your lifetime.

Medimanage is a top health insurance policy in India which focuses on providing unbiased healthcare solution. They have professionals who provides expert advise and then owns the responsibility to service the product. It is the best health insurance agent whom you can rely on.

 

Importance of health insurance

In a country like India, where the index of human life is very low, the need of having a health insurance is of utmost importance. Everyone should opt for a good insurance plan that includes hospitalization costs, laboratory test and medication costs, medical outlays, and critical illness coverage. Also, you should opt for a best mediclaim plan for tax saving. The IT Act allows deductions under section 80D if you pay health insurance premiums. If you obtain a Mediclaim plan for tax saving, you will have a reduced tax liability and thereby your annual taxable earnings are reduced.

Key advantages of a health insurance plan

• Cashless treatment: Every health insurance company has its tie-up with many hospitals and nursing homes called the empanelled hospital. If you are admitted to such a hospital, you need not pay anything. This type of plan is mostly preferred as you are free from the stress of claims and arrangement of documents. If the expenses are beyond the limit you are insured for, then you yourself have to pay that amount to the hospital. Also, you will not be entitled to cashless treatment if you not taking treatment in any empanelled hospital.
• NCB: New claim bonus (NCB) is the advantage provided to the client if no claim was received by him during the previous year. The advantage could be in the form of increased sum assured or discount on the cost. You will avail this advantage at the time of renewal.
• Co-Payment: Some insurance plans offer you co-payment option. It is a cost-sharing system where people will have to bear some share in the total cost to be admitted.
• Portability: This feature allows the insured to switch from one insurance company to other without any loss of advantages w.r.t.the waiting period, pre-existing ailments, and other benefits earned in the previous plan.
• Health insurance through an employer: Most of the employers today provide health insurance to all their employees to cover hospitalization expenses of his own and also of their family members including parents, spouse or children. It is good to opt that mediclaim insurance as need not to pay a premium for that. It is group health scheme in which the amount of premium is decided by your employer on the basis of group size and assured benefits. Also, you are not entitled to get any benefit of the insurance scheme if you have left the job.
• Health insurance for tax benefits: Health insurance plans entitle you for receiving tax benefits u/s 80D. The premium paid for health insurance for self and family will give you a rebate in tax. The health insurance for tax benefit is a good option as you can save up to Rs.25000 if you are below 60 years and up to Rs. 30000 if you are above 60 years.

Medimanage is one such health insurance broker, with an integrated service model which provides unbiased health insurance advisory, technology based delivery and professional medical insurance claims assistance focused on you. It is the only Health Insurance Provider in India, which blends the entire service cycle right from expert advisory, purchase assistance, medical insurance claims assistance and renewals into one package.

 

Health insurance policies and practices

Health insurance is an insurance which covers all the medical expenses borne out to the client. It depends on the plan the client choose that how much coverage will they get for hospital expenses, surgical expenses, critical illness expenses etc. our changing lifestyles have caused us so many diseases which have prolonged and expensive treatments. Thus a health insurance policy prevents you and your family from bearing huge financial crises at the time of any medical emergency. Many people also buy health insurance for tax saving as IT Act provides deductions on insurance premiums u/s 80D. Nearly a saving of Rs. 40000 can be made if you take health insurance for tax saving.

A good health insurance plan provides you financial support in case of emergencies related to health care. It helps you to meet various insurance needs based on different life stages of an individual or related to some specific disease.

Considerations to keep in mind before picking up an insurance plan

Never forget that your health is your wealth. Only by being healthy you can keep yourself in right frame and peace of mind so that you are always ready to tackle the hurdles which may arise anytime in life. Health is very unpredictable. Maybe you always make healthy choices, follow a proper diet schedule, indulges in exercises, but still, you may fall sick. Accidental situations always come as a surprise for which no one is ever planned in advance. Thus even if you are best at your health, you should visit a medical practitioner regularly for your health checkups. Also, select an appropriate plan of health insurance to save yourself from financial burdens if any medical emergency arises. Keep the following things in mind for deciding an appropriate health insurance plan:

• Your financial conditions: The cost of health care plans is constantly rising. Although they are providing you tax benefits but don’t just take this point as the sole objective of purchasing a health insurance plan. To achieve health insurance benefits for the long term and on the affordable financial scale, you should go for a detailed health care plan. Having an insurance for health is making small payments for getting long-term benefits.
• The premium: Don’t just go to the monthly premium payments. They may be within the reach of your pocket. Along with the premiums, you may have to suffer a burden of co-payment as well. Co-payment is that amount which will be paid out of your pocket before your insurer covers the cost burden. So before taking a decision, think practically about how much premium is affordable to you and which will be the best plan to go for.

Make mediclaim insurance policy comparison to know the best prices and see which one suits you the best. Medimanage helps you to choose out the best policy which reimburses your expenses as well as does not put a burden on your wallet.

 

Best tax saving technique- health insurance

We think of many options, how we should save the taxes and enhance our savings. For long-term benefits, health insurance for tax saving is the best option. Mediclaim health insurance in India will provide coverage for all hospitalization expenses in case of sickness and accidents. Also, there are cashless services where the insurer settles the payment directly with the hospital. This ensures the minimum burden of expense on your wallet. Getting into health insurance for tax saving is a smart approach to save ourselves from unforeseen medical emergencies as well as encouraging investments.

Alarming health care costs:

Health care is getting costly day by day. Hospitalization in any hospital is costing such a huge amount that people are getting scared of how will they take care of their themselves if any medical emergency arises, from where will they manage the funds. In such a hike of medical cost, no one can imagine depending on friends and relatives for help at the time of need. So in such a situation, health insurance is best to opt. It covers risks against all kinds of health-related issues without putting the burden on your pockets. Also, it generates investment in the form of tax benefits.

Tax benefit:

The premium paid for a mediclaim policy offers you a deduction in tax u/s 80D of the income tax act. Only individuals and the members of Hindu Undivided Family (HUF) are entitled to get this deduction. In health insurance policy, deductions in tax payment are as follows:

• Insurance for kids, spouse, and self: Rs. 25000 p.a.
• Insurance for parents
• If parents are below 60 years of age, then an additional deduction of Rs. 25000 is available.
• If anyone of the parents is above 60 years, then additional Rs. 30000 deduction is provided.
• It means an individual has the chance to save Rs. 55000 as a deduction from his net taxable income if he opts for health insurance policy.

Ignored aspects under tax planning:

Health insurance of parents is an aspect which is often ignored while tax planning. Even the accountants are unaware about the benefits of taxes under parental health insurance schemes. There is an additional deduction of Rs. 30000 while paying a premium for parental health insurance. It is such a gift that gives our parents long-term security of life with assured quality as well as at affordable prices.

But remember that the amount of insurance premium is never paid in cash.

Also, this deduction is not given for corporate insurance plans, i.e. the plans taken in the company’s name for their employees unless the payment of premium is done online through internet banking, debit cards, credit cards or through the payroll deduction system. Parental insurance is the best mediclaim plan for tax saving. Every individual should think of such plans to get quality health care and tax saving facilities. Medimanage is providing best mediclaim plan for tax saving so that the public gets good health care services and no one gets devoid of such services just because of a tax burden.