Health Insurance Benefits
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care and health system expenses, among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity. According to the Health Insurance Association of America, health insurance is defined as “coverage that provides for the payments of benefits as a result of sickness or injury. Includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment”.
Health insurance in India is a growing segment of India’s economy. In 2011, 3.9% of India’s gross domestic product was spent in the health sector. Launched in 1986, the health insurance industry has grown significantly mainly due to liberalization of economy and general awareness. By 2010, more than 25% of India’s population had access to some form of health insurance. According to the World Health Organisation (WHO), this is among the lowest of the BRICS (Brazil, Russia, India, China, South Africa) economies. Policies are available that offer both individual and family cover.
There are standalone health insurers along with government sponsored health insurance providers. Until recently, to improve the awareness and reduce the procrastination for buying health insurance, the General Insurance Corporation of India and theInsurance Regulatory and Development Authority had launched an awareness campaign for all segments of the population.
Hospitalization, Hospital daily cash benefit plans and Critical illness plans are the major types of health insurance plan in India. Indian health insurance having following key aspectst.
- Direct Payment or Cashless Facility.
- Reimbursement at the end of the hospital stay
- Policy price range
In India Under the Income Tax Act, under Section 80D, the insured person who takes out the policy can claim for tax deductions.