Express News Service

That a vast majority of Indians who can afford it are grossly under-insured, be it in terms of Life Insurance or Health Insurance, is one of the worst kept secrets in the insurance industry. In my experience of 
interacting with Indians (non-residents included) who have the means to, but yet remain uninsured or at best, under-insured the reasons have at times bordered on the absurd. In the past, I have known a successful businessman, who, though convinced about the need to take a Life Insurance as well as Health Cover insisted on providing an alternate address.

When I enquired about the reason for this rather strange request, he enlightened me about a belief in his family that those who purchased Life Insurance were inviting death, and those purchasing Health Insurance were inviting a host of serious illnesses. The irony of his being a qualified engineer from an institution of some repute was not lost on me.

Prior to the start of this financial year, barely 10 per cent of those with the means, were interested in buying health insurance to cover new age diseases. But since the advent of the fear instilled by the pandemic, 71 per cent now consider health insurance a necessity. Notably, and almost overnight, 57 per cent of those surveyed now claim to understand the importance of comprehensive health insurance plans. These are the results of a recent survey undertaken by a private player in the health insurance space.

The stretching of an already shaky public healthcare system in many parts of the country, horror 
stories of prohibitive medical costs in private hospitals, uncertainty around the optimal line of treatment and the possibility of a forced quarantine over a long period that disrupts regular income seems to have forced people to re-prioritise and purchase health insurance plans.

All of a sudden, assuming the survey has captured it accurately, as much as 73 per cent of the people surveyed were genuinely concerned about escalating medical costs, which catapults it higher on the priority list than goals like children’s education and marriage besides post-retirement life. The survey also suggests that with the advent of the pandemic, the top three concerns in the minds of people are of family members contracting the disease, risk of job loss and mental anxiety.

Ironically, inspite of a bill being passed in Parliament equating the treatment and eligibility of mental and physical ailments, most insurance companies in India have still managed to duck payout liability in case of treatment relating to mental and psychological issues with some clever legal wording. It is high time the 
IRDAI, which is otherwise perceived as a better regulator, cracked the whip on this deplorable and 
unfair malpractice.

Clearly, it is the fear factor that is driving sales for the health insurance industry at this point in time. Now, 
assuming an immunity vaccine is round the corner, will the trend of growing demand for health insurance wane ?Not in a hurry, methinks.

Ashok Kumar
heads LKW-India. He can be reached at ceolotus@hotmail.com