The reason why Insurance Companies lost money and that too heavily is that while issuing group/ corporate policies they give coverage for:
• Pre-existing diseases
• Maternity
The question arises – If pre-existing and maternity coverage is not given to individuals/ families then why it is being giving to corporate? Is this not a restrictive practice? Should we try to stop it?
Is it the desire of the insurance companies to show high top line figure that business is accepted by insurance companies from corporates at low premium rate?
Is it that large corporates are having bargaining power because of large number of personnel to be covered and big ticket cheque being issued by them?
Some of these questions need to be answered. Comments are invited.
2 comments:
American insurance companies have no issues with pre-existing diseases- they provide a comprehensive health insurance. Ofcourse the premiums are high, but the patient is assured of comprehensive coverage. This is desirable in India too. Just because I have diabetes, I cannot be denied health insurance if I develop a Heart attack whose incidence is higher in diabetics.It is a fact that corporate clients get coverage for maternity - this is stupid , since when is the natural process of child birth considered a disease? What is even more atrocious is that even corporate clients are denied coverage for complications arising from pregnancy, which is actually a medical condition. The reason health insurance is a loss-making venture is because there are not enough poeple in India paying premiums for same. This needs to change.
We fully support your views .In one of my blog we suggested that health insurance for senior citizens should be made compulsory.
Assuming 10 crores get covered and pay Rs 6000 each then the portfolio will go up by Rs 60000 crores .Health Insurance touched figure of Rs 8100 cores ( estimate for yr ending 31 st March 2010 ).
Post a Comment