Mandatory medical insurance for employees post lockdown-Good for families

Mandatory medical insurance for employees post lockdown-Good for families

There is no denial that penetration of health insurance has to increase so that large number of persons who are not part of:
-Group Corporate health insurance (at present voluntary) through insurance companies 
-CGHS
-ESIC
-State Government Health Scheme
-Defence forces Health Scheme
-Railway Health Scheme
-Ayushman

The fact is that this number is very large as they are working for micro units, unorganized sector, are self employed or are what we call daily wage workers.

Under order No. 40-3/2020-DM-I (A) The ministry of home affairs government of India has made it mandatory for all employers, who resume functioning post COVID-19 lockdown in the country, to provide medical insurance to their employees.

As per clause 5 of Annexure – II of the revised guidelines and standard operating procedure for social distancing for offices, workplaces, factories and establishments, medical insurance for the workers is to be made mandatory.

We understand that as a follow up action to this notification of  the government of India, the Insurance Regulatory and Development Authority of India (IRDAI) has asked all general and standalone health insurers to offer comprehensive health insurance policies either to individuals or groups in order to enable the listed organizations/employers/establishments comply with the government of India directives.

Ms. TL Alamelu IRDAI member (non-life) said, “The insurers are advised to devise comprehensive health insurance products with simple wordings, conditions and at affordable cost to be offered to the stated organizations”.

“The above referred organizations should be able to continue the medical insurance policy offered by insurers not only for the present situation but for all time,” said Ms Alamelu.

We see this is a great opportunity to increase the penetration of Health Insurance in the country.

With fewer exclusions, why health insurance premium should increase?

In the recent months Government/ Regulator has been moving in the direction of reducing exclusions in Health Insurance Policy. I found it interesting to read the viewpoint of leading persons in the country in Mint Newspaper:

• Mr. S. Brahmajosyula (head, underwriting and reinsurance) SBI General Insurance
• Mr. G. S Batra (head,retail underwriting) bajaj Allianze General Insurance
• Mr. Tarun Mathur (Chief, business officer, general insurance) policybazaar.com
• Mr. Ravi Vishwanath (executive Director and chief executive officer) reliance Health Insurance.

Indications are that due to reduction of exclusions the industry is in a mood or is considering to increase the premium.

Are we not ignoring the fact that reduction in exclusions will result in increase in customer base as more customers will buy this product. As the number of policy holders increases the benefit should be passed on them.

Various factors are stopping us from increase in premium as this will result is retarding the growth of health insurance. Reduction of Fixed Deposit interest rate has affected many senior citizens and has compelled them to either reduce sum assured in the policy or even let the policy lapse.

It is our right to expect from Finance Minister that GST on health insurance policy be reduced or why not be brought to 0%.

50 Crores families will benefit from Ayushman with majority funding coming from Government. Then  4 Crores families who buy Health Insurance out of their own pocket or savings –Government should  support them with GST at 0%or say 5%  on Health insurance.

If you are convinced with this view point then take initiative of writing your demand to Finance Minister as her office has started working on the Budget. I am sure hon’ble Minister will definitely respond to 25000 letters.