Medical insurance – time to reduce the premium

Medical Insurance is in good demand these days. Insure and feel secure is the “Mantra” of the lower middle class and middle class in India. The reasons for the rush is probably the health consequences of the recent terrorist activities and injuries resulting from riots by political organizations, and umpteen number of road accidents occurring in the cities like Mumbai. Health care costs have also gone up considerably. The premiums paid come under 80D of Income Tax Act, of Rs.15,000 for individuals and Rs.20,000 for senior citizens. One should note that all personal accident policies may not cover terror.

In view of the very significant increase in the demand for vide variety of insurance products, it is necessary that the regulators should ensure that the government and private players in the field do not exploit the consumers by framing conditions which impede fast or timely claims. In fact, the calculations of the amount of premiums payable should take into account the increased life expectancy and better health care facilities available today. There is scope to bring down the premiums, particularly for senior citizens and for elders with old age diseases such as diabetes and hypertension. Organizations such as LIC of India should take a lead in this matter. Profit making should not be the only criteria.

Question is: what type of health-care insurance coverage should be given to the urban and rural poor? The Indian Health Minister should concentrate on such primary and important issues rather than the secondary issues like prohibition and smoking.