The importance of Health Insurance, popularly known as Mediclaim has significantly increased in India in the recent years. Awareness and importance of health and health related issues has induced this growth. Also, people are now more financially smart and pay more attention to their financial planning. They know that health would always not remain the same and hence it is wiser to invest in a comprehensive medical policy.

On the other hand, the insurance companies were quick to react to this situation. They saw a market and hence, got out of their shell and evolved. They knew that they had to provide smart medical insurance plans to tap the market.

All these factors have lead to the changing face of the health insurance sector in India. Apart from this, steps taken by the government and the endeavors of the insurance companies are the prime factors inducing this growth.

Contribution of the Government in shaping the Health Insurance Sector

  • Providing right information on the health related issues is necessary and in this case, the government has taken valid steps to inform people through different mediums, which has been proved helpful in generating the accurate level of¬†influence.
  • The government has intervened whenever the cost of the medical care has become unreasonable. Such government intervention is needed to make the process of medical insurance cost-effective and achievable especially for those who are financial deprived.
  • The government needs to introduce innovative healthcare policies to the medical market since medical insurance is an emerging financial tool in meeting healthcare needs of the Indian population. To implement this reform, the government needs to establish appropriate health infrastructure to support the mediclaim facilities that are offered in the market.
  • The government has also taken various initiatives to support the growth of the insurance sector such as Tax benefit offered under Sec 80D of the Income Tax Act.

Endeavors of the Private Companies in promoting the Health Insurance Sector

  • The private players in the health insurance sector have supported their customers by providing them affordable and easily accessible insurance. The insurance companies have developed precocious mediclaim insurance policies that not only provide comprehensive coverage but also induce various other benefits.
  • The insurance companies have given a lot of importance to convenience of the customer. Buying the e-policy online has become a much convenient option with the facility to renew it anytime, anywhere.¬†
  • Another big step in the health insurance sector is the floater concept, where they cover the entire family in one policy.
  • Private companies are continuously concocting and improving their products to meet the needs of the people as much as possible. Such steps include various plans that cover critical illnesses, outpatient expenses and others.