#NewDelhi : Unian Finance Minister Mr #Arunjaitley Insurers have given a thumbs up to FM Arun Jaitley’s proposal to extend health insurance cover of Rs 1 lakh to economically weaker families.
He has also proposed a top-up cover of Rs 30,000 for senior citizens over the age of 60 in this category.
“It was being talked about for some time and has finally come through now. It’s a positive development that will also help deepen insurance penetration,” said Bhargav Dasgupta, MD and CEO, ICICI Lombard General Insurance.
Reports of such an all-encompassing scheme have been doing the rounds since the success of the government-promoted Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
“Catastrophic health events are the single most important cause of unforeseen out-of-pocket expenditure which pushes lakhs of households below the poverty line every year,” Jaitley noted during his Budget speech.
Senior citizens who are most vulnerable to ailments and resultant hospitalisation will stand to benefit from the scheme, provided the scheme follows a lenient underwriting policy. Most insurance companies either deny health policies to senior citizens or charge prohibitively high premiums.
“The proposal for additional cover for senior citizens will help reduce the burden of healthcare expenditure for the aged,” said Sandeep Patel, MD and CEO, Cigna TTK Health Insurance.
However, the exact contours of the scheme, including income eligibility, medical underwriting, coverage for pre-existing illnesses and cashless network, are yet to be spelt out. It also remains to be seen whether the government will fund the premium or ask policyholders to share a part of the burden. Industry-watchers believe it will be modelled on the lines of the twin insurance schemes rolled out last year.
“Instead of funding hospitals, the government is looking at financing healthcare needs, giving greater freedom of choice to individuals,” said Mahavir Chopra, head, health, accident and life insurance, Coverfox.com. “PMJJBY and PMSBY have increased awareness about insurance and deepened penetration. As a result, people are now realising the importance of health insurance too,” said Chopra.
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