Despite the projections of a high growth in the
health insurance sector, India still lags behind when it comes to awareness
about the same. The general public are by and large ignorant about the benefits
of availing healthcare insurance policies and there lies an urgent need to
educate the masses regarding the importance of Health Insurance and the
benefits derived on account of it.
Health insurance sector is very
much in a formative stage still. There are health insurance products for more
than 20 years now but still the penetration level is barely 2-3 per cent of the
population. Though the general public is concerned about surging health care
costs, they don’t realize that health policies can save them monetary losses.
They often looks to purchase health insurance only when he or she needs medical
treatment or at an older age. It is advisable to purchase insurance beforehand
and preferably at a younger age as the premiums are cheaper, and customers will
have no ‘pre-existing ailment exclusions’ as they grow older. Another factor
that should encourage Indians to purchase health insurance is that they can
avail of tax benefits under Section 80D of the Income Tax Act for most health
insurance plans.
There is
an irrationalfear among people that insurance is wastage of money and that they
are never going to be awarded the claim money. In this sense, the role of
intermediaries becomes vital who can assuage them comfortably. Again the
distribution channels in India are very weak. Considering that Indian market is
largely retail, consumers should be reached out not specifically for each need
but through an intermediary who will look comprehensively into their needs.
In most
cases, the insured is not even aware of his rights and duties. Most insurance
purchasers do not have any clue as to what they should do if they have a
disagreement on any issue with their insurance company - whether it is a simple
thing as repeatedly asking for a change of address or receiving the policy
itself or a slightly more difficult one that involves a dispute/ difference of
opinion on the claim settlement. They need to be aware that there is an
insurance ombudsman who looks into such grievances and resolves the matter.
Against this backdrop, IRDA has taken the
responsibility to launch a multi-media, multi-level awareness campaign to
address the issues related to the above mentioned problems. The insurance
regulator is leaving no stone unturned to increase insurance awareness among
prospective and existing policyholders in India. Given that the regulatory
framework is improving and that many new players including foreign companies
are willing to come in, things might be at a take-off stage.