Higher premiums and lack of urgency together with excessive complexity are the prime cause for a lot of Indians not shopping for medical health insurance, discover a survey on the development amongst insurance coverage patrons in India.
Lack of affordability, larger premiums, issue in understanding medical health insurance clauses, and inadequate funds, emerged as the primary obstruction for people who find themselves keen to purchase medical health insurance, based on the policybazaar.com’s report, titled ‘How India buys Insurance’.
As per the survey, 43 per cent of all of the respondents who did not take any medical health insurance cited excessive premiums as the primary cause for not doing so. Out of the overall individuals who participated within the survey, 19% did not even perceive how a medical health insurance coverage works. 33% of the respondents did not discover any urgency in shopping for medical health insurance.
Notably, larger premiums had been one of many essential causes for lapse amongst medical health insurance lapsers. 47% of the medical health insurance lapsers cited larger medical health insurance premiums as the primary cause.
The report additionally mentions that medical health insurance premiums turned a extremely costly post-COVID pandemic. “In 2021, the nation registered the very best medical inflation charge among the many Asian international locations at 14 p.c,” said the report.
2020 witnessed highest number of Health Insurance purchases in the last 5 years
In the report, it was found that most of the respondents in the survey purchased their health insurance in 2020. Out of the total insurers, 22% purchased their insurance in 2020. On the other hand, 5% of the insurers who participated in the survey bought their health insurance in 2022.
93% of people know about health insurance, but only 43% of them own one
The report presented a stark gap between the people who are aware of the importance of health insurance and people who end up buying one. 93% of the people who took part in the survey were aware of the availability of health insurance policies, and 73% rated health insurance as “very important” to have. However, solely 43% of them had an lively medical health insurance coverage.
The report acquired inputs from 3327 respondents coming from 27 cities throughout India. The fieldwork was carried out from February to March 2023.
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Updated: 05 Jul 2023, 02:33 PM IST