has not picked up in the country as expected due to lack of affordability and risk
awareness, Irda Chairman Subhash
Chandra Khuntia said on Friday.
He called for simplification and rationalisation of health insurance
products so that they are understood by a common people.
awareness, lack of affordability and low understanding of the insurance
products -- these are some of the reasons why health insurance
has not picked up so well even though the growth rate is high for the higher income
group as a whole," Khuntia said at the Health Insurance
Summit organised by industry body CII.
The health insurance
industry has seen an average growth of 16 per cent cumulatively over the last 4-5 years. About 27 per cent of the total insurance
premium in the general insurance
comes from health sector.
As the government's ambitious health insurance
scheme Ayushman Bharat, which aims to cover nearly 10 crore families comprising almost 50 crore members, takes off, Khuntia asked the insurance
firms on board the scheme to offer standardised and simple products
that are understandable to the policyholders.
He said most of the states have agreed to join Ayushman Bharat
with only a few not yet confirmed to be a part of it.
Bhushan said the states will be given the flexibility to implement the schemes.
"It will be one country one scheme. But in this, we are providing a lot of flexibility to the states as different states have different contexts, have different health care scheme behaviours and they have different kinds of capacities, so we have can't have one size fitting all," he said.
The flexibility given to states entails areas like what kind of model they want to achieve and also the coverage.
"They can choose the coverage and cost, so it will be one scheme with some variations across states. Till yesterday, we have signed MoUs with 28 states. 28 states are on board so far and that means 8 states are still not on board but that does not mean they will not join," Bhushan said.
However, Bhushan remained non-committal on the launch of this pan-India
scheme, touted as the largest in the world.