What is the Importance of Micro Health Insurance?

Micro Insurance is the kind of insurance, which is tailored especially for lower valued assets, as in for the individuals who earn meagre income or those who are exceptionally low on savings.

We all are no stranger to the fact that India is a developing country wherein a considerable part of the population lives in rural areas where there is not much access to dispensaries or clinics. According to a recent statistic, the rural community in India comprises of 65.53% of the total population.

They earn their bread by farming or by doing small businesses. The worst thing is the rural family is more prone to illnesses as there is not much awareness. Whenever there is a medical emergency, the family finds it difficult to tackle the disease as they cannot afford medical services and quality healthcare. Especially, in recent times where the world is swarming its way through a pandemic like COVID-19, it is deemed mandatory to have health insurance for family.

Micro health insurance is designed especially for the rural sector of our country. It has intensive planning for individuals living in the rural sector.

Micro Health Insurance: Some Alluring Features

The features of the schemes are the following:

• The sum insured offered under this type of plan is limited as it is a Micro Insurance plan. It usually ranges from Rs 1 lakh to Rs 5 lakh.
• The very premise the Micro Insurance companies work on is to make these kinds of insurance affordable to the poor, so the premiums are extremely low, and they focus on giving quality healthcare services at a low cost.
• The coverage for the schemes given by the Micro Insurance is granted for one year.
• There is an additional option to cover all the members present in the family by taking the entire policy on a family floater basis.
• As the sum for the coverage is low, no pre-entrance health check-ups are needed when someone intends to buy the plan.
• There is an age restriction for up to 65 years.
• The most eye-catching and lucrative benefit of a Micro Insurance is that it comes with lifelong renewal benefit.

Micro Insurance: The Scope of Benefits

Apart from these features mentioned above, the following benefits are offered under micro health insurance plans:

• The micro health insurance also has a provision for coverage of pre-hospitalization expenses.
• Even after buying insurance, there is a documentation process for claiming it. The micro health insurance policy makes sure that one does not have to go through the extra hassle of such a tedious procedure and makes the releasing of post-hospitalization funds easy.
• The micro health plans also have a coverage for the daycare treatments.
• There are some groups of people who cannot afford even the cost of the ambulance. The insurance plans also make sure that the cost of an ambulance is covered via the scheme.
• Majority of the health insurance policies in Indiahave an incredibly good network of hospitals and clinics to benefit the insurer when there is an emergency.

The Major Concern!

According to a recent survey, the two major concerns of out-of-pocket expenditures are financial catastrophe and impoverishment. The reports also suggest that 100 million people are pushed below the poverty line due to the lack of payments for medical care.

Many of the developed countries rely on health insurance policies and general taxation. However, this might not be the case for the underdeveloped or developing countries who have a staggering GDP (Gross Domestic Product). The main reason for this is they do not have a strong tax base which in turn leads to a downfall of medical expenses. The main criteria for properly identifying any insurance program include the active participation of the individual and the availability of the services provided by the health insurance policy against the monthly/yearly premiums paid by the policyholders.

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Other Initiatives!

Apart from the above scheme, the Government of India has also maximized their efforts to introduce special health insurance schemes for the economically backward class of individuals.

Following are the most recent schemes which are under practice:

1. Ayushman Bharat Scheme
2. Pradhan Mantri Jan Arogya Yojana (PMJAY)

Both these schemes are launched under the valuable guidance of our honorable Prime Minister, Shri. Narendra Modi.

The PMJAY scheme launched by our PM truly revolutionized the health insurance for the low-income class individual. The most alluring part of this enterprise is that one can avail the coverage of Rs 5 lakh by paying the premium with a rate as marginal as Rs 30.

3. Aam Aadmi Bima Yojana (AABY)

This scheme is instrumental in providing health insurance coverage to the individuals from all walks of life with occupations such as fishing, handloom, weaving. The scheme has encompassed people from all aspects and can provide coverage for people engaging in 48 occupations.

All these schemes have truly set a benchmark and revolutionized the best health insurance policies in India. There are some schemes which are state-specific and are promoted for mitigation and for easy distribution of work across the remotest parts of the country. Every scheme has a different objective.

Summing it Up!

Micro health Insurance has benefitted many people and proved to be a successful venture in our country. Social awareness against various diseases is created, and people become more and more responsible when it comes to their health as well as their family’s health. There are various NGO (Non- Government Organizations) and semi-public bodies who have extended their help towards this. There are some public health services in our country which provide free basic health care and arrange check-ups for all the people who are underprivileged or below the poverty line. It is a collective endeavor of the government as well, but owing to our increasing population, sometimes, it becomes difficult to cover people from all walks of life. The health insurance for family is also crucial as this entire enterprise overrides on the fact that it is important to cover all the family members.