Medical Insurance Industry in India is Set to Boom in the Coming Decade. Indians have witnessed considerable growth in the medical insurance sector, especially in the last few years, with both the central and state governments introducing numerous health insurance schemes. The insurance schemes were launched to ensure coverage to almost every household unable to afford insurance cover sold by public and private insurance companies in the country. Medical insurance in India is booming as health insurers line up myriad schemes to protect their clients against possible and critical ailments.
Endorsing “Right to Health”
However, the healthcare sector in India continues to be underfunded. This is contrary to the “Right to Health” obligation that the Indian Constitution promises to all. The total health expenditure, both public and private, is estimated at 3.9 percent of the GDP, which is significantly lower than the average expenditure on health. Ineffective public insurance schemes and low uptake of commercial insurance cover only a minor percentage of the country’s population. Besides, the indirect taxes on individual health insurance have shot up to 18 percent from 12.5 percent over the period, thus, reducing individuals’ capacity to pay for cover.
The coronavirus pandemic has put tremendous pressure on the country’s health front. Unbecoming questions on humongous bills charged by private hospitals were raised as government hospitals expressed their helplessness in admitting more patients. Expenses on Outpatient Department (OPD), pharmacies, and diagnostics constitute 65 percent of the healthcare expenses. With more people seeking protection against COVID-19, inquiries about medical insurance policies have gone up drastically since March 2020. The focus of insurers must be to develop solutions that help their customers meet the out-of-pocket expenses. An increasing number of fresh cases of the virus being detected in almost all Indian states, especially Delhi and Maharashtra, have prompted greater awareness of health products including health insurance.
Health Insurance on the Rise
Many people are now comparing this epidemic with the Spanish flu in 1918 and insist on how in the absence of any medicine or vaccine, this virus will result in more deaths. The dread of being affected on contact has led to a spurt in digital sales of health insurance. It is expected that the medical insurance industry will be on a high for the next ten years as online insurance sales have replaced buying insurance through agents. Besides, the plague has triggered sales of coronavirus insurance policy whereas many customers have shown interest in paying for a comprehensive insurance cover that covers pandemics like COVID-19 too. With an unwarranted plague destroying both the economy and lives, the need to secure future with an insurance cover seems more pertinent than before, thus, explaining the rise of medical insurance over the next decade in India.