Around seven lakh health insurance policyholders were studies spread across 82 cities in India
Apollo Munich Health Insurance has found that 51 per cent of health insurance policyholders in India are under insured as the policy holders have purchased low sum insured health insurance policies that would not suffice in medical emergencies. Apollo Munich studied around seven lakh health insurance policyholders spread across 82 cities in India, and has found that both men and women across metros, Tier-I and II cities and towns are under insured. At 52 per cent men are more under insured than women at 46 per cent.
Although the number of health insurance policyholders in India is increasing annually, people most often choose the lowest sum insured policy, without comprehending the entire process of choosing an appropriate cover. Some of the reasons are lack of awareness about how to pick the right sum insured, over dependence on corporate health insurance coverage,willingness to pay a premium that is only up to the highest limit of rebate under Section 80D of the Income Tax Act etc.
The company has been able to conclude that under insurance is more prevalent in the higher age brackets as 62 per cent of policyholders above 45 years of age are under insured. The slight respite to this grave problem is that young people seem to be choosing the right sum insured comparatively, since at 38 per cent people between 18-35 years are the least under insured segment amongst all other age groups. The under insurance percentage of people between 61-65 years is 75 per cent. One of the main reasons for this alarming under insurance statistic is that policy holders do not upgrade their sum insured on the basis of their increasing age, changing needs and medical inflation.
The research also threw light on the fact that South India has the maximum number under insured people amounting to 59 per cent of policy holders, while the under insurance percentage in the North, West, East and Central parts of the country is 49 per cent, 49 per cent, 48 per cent and 45 per cent respectively.
EH News Bureau