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How can India fill the gap in Health Insurance Awareness?
ET Spotlight|
Updated: Feb 26, 2018, 10.23 AM IST
It is 2018 and we talk about development, technology and rocket science, but it is not yet mandatory to have health insurance in India. What would people do if they didn’t remain healthy? Are we marveling the evolution in science and technology while our health continues to be ignored by the masses and system alike? Is the development in medical science actually helping us provide specialized treatments options in the rural India? The answer sadly, is ‘NO.’
In India, the healthcare costs are immensely high and is on a continuous rise. We take pride in being the 6th wealthiest country in the world and 5th largest defence spender. But is India treading on a sanguine path? Well, it is pretty hard to discern, as the Planning Commission in 2012 stated that the people below the poverty line in India account for 250 million, of which 200 million people live in the rural areas. Such facts elucidate that poverty is very much a reality in India, and it further begets many more troubles. One such issue is lack of health insurance awareness in our country.
Major Snags
The condition of health insurance in India is pitiful, as a huge part of our population does not use health insurance to finance their medical expenditures. A large majority of people in India believe that health insurance is not a worthy investment and therefore, avoid buying such insurance products.
According to a report by CIA World, about 29.8%¹ of India’s population is below the poverty line. The lack of adequate housing, sanitary facilities, and deprivation from nutritious food make many people prone towards serious ailments. Diseases like malaria, dengue, diarrhea, heart problems, etc. are extremely prevalent among the poor. In most of the cases, the exorbitant medical diagnosis dissuades them from seeking any medical attention.
Image Source: Rashtriya Swasthya Bima Yojna Website
National Sample Survey Organization (NSSO) envisages that the main reason for the indebtedness among the poor and the middle class people is the escalating medical costs. A large proportion of people either avail loans or sell their assets in order to settle the colossal medical expenditures incurred.
The principal reason behind this is that people in India lack the knowledge of the simple steps to take to secure our healthcare costs. We are all aware of the healthcare scenario and the rising costs, but we often dismiss the need for insurance with the thought that it may be unnecessary. What we need is proper guidance on the effective steps that need to be taken to prepare for uncertain illnesses in the future.
Why are Indians Unaware about Health Insurance?
The sad truth is that the continuous rise in health care costs is often one of the leading causes of the escalating poverty levels in our country. The covalent bond between poverty and ill health needs to be recognized because good health of the country is a fundamental component in the economic growth and stability of the nation. The lack of this knowledge is one of the pivotal reasons for the unawareness of health insurance. Here are some leading causes for this widespread lack of awareness:
•The existing burdens of loans on the poor make them reluctant to think of the credit policies that are actually issued in their interest.
•The biggest factor that contributes to this unawareness of health insurance is illiteracy. Education and exposure play a pivotal role in promoting the perks of health insurance to the poor and needy.
•Even though right to information is a fundamental right in our country, a considerable section of Indians lack the exposure to information that is issued in the national interest of the people.
•The growth of the private health sector has an upper hand over the public sector health sector. Due to this, the expensive services of the private sector do not reach the poor and underprivileged, who need it the most.
Intercession of the Government
Launched in 2008 by the Government of India, Rashtriya Swasthya Bima Yojna (RSBY)² is a health insurance program that aimed at providing healthcare cover for the Indians below poverty line. The government launched this mammoth insurance plan for the underprivileged to help them in medical treatment without any financial burden. Under RSBY, the insurance companies also create awareness programs about the importance of health insurance in rural areas. Almost 130 million people are insured under this scheme and approximately 36 million families have received smart cards for their free medical treatment.
Image Source: Rashtriya Swasthya Bima Yojna Website
How to make insurance awareness campaign successful?
Although the Government of India has taken quite a few initiatives in spreading awareness about health insurance, we are still a long way from our goal. There are a few steps that companies also need to take to accelerate the growth.
•Brands should launch health insurance campaigns that are mindful. While they can raise awareness through videos and radio, they should also make sure they answer real customer questions on their plans page. Take Apollo Munich’s health insurance plans page for example, more brands need to follow suit and make sure that people’s questions on health insurance are addressed timely.
•Enlightening people about the benefits of health insurance in monetary terms, because making people understand about the policies in financial terms would be a much better option. This will highlight the financial benefits of actually opting for a health insurance.
•Making people understand about the rising costs of medical expenses, if something miserable were to happen in a family. Also educating people about the cover they would get through health insurance schemes.
•Organizing campaigns to promote the essence of health insurance in the lives of people.
Conclusion
The socio-economic development and the health of the country go hand in hand. There is no doubt that India is progressing smoothly as far as its economic development is concerned. However we are a long way from our goal in the health front. The health system in our county is at crossroads today. Therefore, it becomes very important for the government to launch more firm health insurance schemes to cover the gargantuan population of our country, India.
In the end, it can be concluded that health insurance is nothing but a protection against the medical expenses of the future for which the person pays premium in his/her resent. It is a known fact that people can fall prey to any serious ailment anytime, because of the uncertainty of our lives. So, let’s just not waste our time waiting for something critical to happen, but opt for a health insurance today, that will provide you the financial security when the need arises.
Sources:
1. https://photius.com/rankings/2017/economy/population_below_poverty_line_2017_0.html
2. rsby.gov.in
In India, the healthcare costs are immensely high and is on a continuous rise. We take pride in being the 6th wealthiest country in the world and 5th largest defence spender. But is India treading on a sanguine path? Well, it is pretty hard to discern, as the Planning Commission in 2012 stated that the people below the poverty line in India account for 250 million, of which 200 million people live in the rural areas. Such facts elucidate that poverty is very much a reality in India, and it further begets many more troubles. One such issue is lack of health insurance awareness in our country.
Major Snags
The condition of health insurance in India is pitiful, as a huge part of our population does not use health insurance to finance their medical expenditures. A large majority of people in India believe that health insurance is not a worthy investment and therefore, avoid buying such insurance products.
According to a report by CIA World, about 29.8%¹ of India’s population is below the poverty line. The lack of adequate housing, sanitary facilities, and deprivation from nutritious food make many people prone towards serious ailments. Diseases like malaria, dengue, diarrhea, heart problems, etc. are extremely prevalent among the poor. In most of the cases, the exorbitant medical diagnosis dissuades them from seeking any medical attention.
Image Source: Rashtriya Swasthya Bima Yojna Website
National Sample Survey Organization (NSSO) envisages that the main reason for the indebtedness among the poor and the middle class people is the escalating medical costs. A large proportion of people either avail loans or sell their assets in order to settle the colossal medical expenditures incurred.
The principal reason behind this is that people in India lack the knowledge of the simple steps to take to secure our healthcare costs. We are all aware of the healthcare scenario and the rising costs, but we often dismiss the need for insurance with the thought that it may be unnecessary. What we need is proper guidance on the effective steps that need to be taken to prepare for uncertain illnesses in the future.
Why are Indians Unaware about Health Insurance?
The sad truth is that the continuous rise in health care costs is often one of the leading causes of the escalating poverty levels in our country. The covalent bond between poverty and ill health needs to be recognized because good health of the country is a fundamental component in the economic growth and stability of the nation. The lack of this knowledge is one of the pivotal reasons for the unawareness of health insurance. Here are some leading causes for this widespread lack of awareness:
•The existing burdens of loans on the poor make them reluctant to think of the credit policies that are actually issued in their interest.
•The biggest factor that contributes to this unawareness of health insurance is illiteracy. Education and exposure play a pivotal role in promoting the perks of health insurance to the poor and needy.
•Even though right to information is a fundamental right in our country, a considerable section of Indians lack the exposure to information that is issued in the national interest of the people.
•The growth of the private health sector has an upper hand over the public sector health sector. Due to this, the expensive services of the private sector do not reach the poor and underprivileged, who need it the most.
Intercession of the Government
Launched in 2008 by the Government of India, Rashtriya Swasthya Bima Yojna (RSBY)² is a health insurance program that aimed at providing healthcare cover for the Indians below poverty line. The government launched this mammoth insurance plan for the underprivileged to help them in medical treatment without any financial burden. Under RSBY, the insurance companies also create awareness programs about the importance of health insurance in rural areas. Almost 130 million people are insured under this scheme and approximately 36 million families have received smart cards for their free medical treatment.
Image Source: Rashtriya Swasthya Bima Yojna Website
How to make insurance awareness campaign successful?
Although the Government of India has taken quite a few initiatives in spreading awareness about health insurance, we are still a long way from our goal. There are a few steps that companies also need to take to accelerate the growth.
•Brands should launch health insurance campaigns that are mindful. While they can raise awareness through videos and radio, they should also make sure they answer real customer questions on their plans page. Take Apollo Munich’s health insurance plans page for example, more brands need to follow suit and make sure that people’s questions on health insurance are addressed timely.
•Enlightening people about the benefits of health insurance in monetary terms, because making people understand about the policies in financial terms would be a much better option. This will highlight the financial benefits of actually opting for a health insurance.
•Making people understand about the rising costs of medical expenses, if something miserable were to happen in a family. Also educating people about the cover they would get through health insurance schemes.
•Organizing campaigns to promote the essence of health insurance in the lives of people.
Conclusion
The socio-economic development and the health of the country go hand in hand. There is no doubt that India is progressing smoothly as far as its economic development is concerned. However we are a long way from our goal in the health front. The health system in our county is at crossroads today. Therefore, it becomes very important for the government to launch more firm health insurance schemes to cover the gargantuan population of our country, India.
In the end, it can be concluded that health insurance is nothing but a protection against the medical expenses of the future for which the person pays premium in his/her resent. It is a known fact that people can fall prey to any serious ailment anytime, because of the uncertainty of our lives. So, let’s just not waste our time waiting for something critical to happen, but opt for a health insurance today, that will provide you the financial security when the need arises.
Sources:
1. https://photius.com/rankings/2017/economy/population_below_poverty_line_2017_0.html
2. rsby.gov.in
