It is common that Indians are least prepared for health related emergencies. If we have medical cover then there is the possibility that the amount will not be sufficient.
As per a recent study, the extent of under-insurance is around 60 to 62 percent in the 25 to 35 and 35 to 45 age groups. It also discovered that the low coverage is not because of the rise in insurance premium, in the last five years the premia have also risen by three to four percent only. The reason behind the same, people have brought cover at some point of time and have not checked it.
The study defines that the healthcare cost in India is has registered double-digit inflation.
“While statistics may say 22 percent of the Indian population is insured, this is largely on account of the various government schemes. Actually, less than five per cent of Indians has insurance. Out of this, two-thirds have less than adequate insurance. Today, any major medical procedure will cost at least Rs 3 lakh in a private hospital. And if it is a corporate hospital cost will be higher due to multi-disciplinary treatment and cross referrals,” says S Prakash, Executive Director, Star Health Insurance.
“While buying health insurance, one can get tax exemption up to Rs 25,000. This too should be factored in the cost because you are effectively paying lesser for the insurance,” adds Roy.