Health Insurance in India Is in Its Infancy

Health Insurance in India Is in Its Infancy

  • Submitted By: rohini
  • Date Submitted: 03/11/2009 11:55 PM
  • Category: Book Reports
  • Words: 462
  • Page: 2
  • Views: 816

Health Insurance in India is in its Infancy Health is a human right, which has also been accepted in the constitution. Health care has always been a problem area for India. Before independence the health structure was in dismal condition with a high morbidity and high mortalities, and prevalence of infectious diseases. Since independence, we have made considerable progress in improving the Health Status of the country. Health insurance in a narrow sense would be an individual or group purchasing health care coverage in advance by paying a fee called a premium. In its broader sense, it would be any arrangement that helps to defer, delay, reduce or altogether avoid payment for health care incurred by individuals and households. India is a low-income country with around a quarter of the population living below the poverty line and about a third of the total population illiterate, with skewed health risks. Insurance is limited to only a small proportion of people covering less than 10% of the total population. In the public sector, the General Insurance Corporation (GIC) along with its four subsidiary companies, namely National Insurance Corporation, New India Assurance Company, Oriental Insurance Company and United Insurance Company, and Life Insurance Corporation (LIC) of India provide insurance schemes. The year 1999 marked the beginning of a new era for health insurance in Indian context. With the passing of the Insurance Regulatory Development Authority Bill (IRDA) the insurance sector was opened to private and foreign participation. The Bill also helped the establishment of an authority to protect the interests of the insurance holds by regulations, promoting and ensuring orderly growth of the Insurance industry. Currently, a few companies such as Bajaj Alliance, ICICI Lombard, Royal Sundaram and Cholamandalam among others are offering health insurance schemes. As of now, there is no mechanism or infrastructure for collecting...

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