75% of people who find themselves about to retire wouldn’t have enough medical insurance. However are issues altering?
It is a generally accepted fact that India’s insurance penetration, which has been steadily improving, is still extremely low compared to many developed countries.
A survey report published by Bajaj Capital showed how India’s insurance is doing under penetration in one of its most critical segments, health insurance.
According to the survey report published by Bajaj Capital, 75 percent of respondents nearing retirement age lack adequate health insurance. Simply put, three out of four people who retire in the next 18 months lack adequate health insurance coverage.
India’s insurance penetration was 3.76 percent, life insurance penetration was 2.82 percent, and non-life insurance penetration was 0.94 percent in FY20. Insurance penetration is a measure of the total insurance premium for the country’s GDP.
While 75 percent of the respondents indicated a lack of adequate insurance coverage for themselves, 39 percent of the respondents did not have adequate health insurance coverage for their spouse.
Adequate health insurance coverage for all family members is a must to ensure that lifetime savings are not used to cover hospital costs. By paying a fraction of the sum insured (sum insured), the policyholder ensures that the insurer bears the hospital costs at the time of the hospital stay.
Vishwajeet Parashar, Executive Vice President and Chief Marketing Officer of Bajaj Capital, commented on the survey: “The survey results underscore the fact that medical inflation is becoming a major problem for both retirees and retirees in the near future Although there is no hard and fast rule, the level of coverage can be set based on where you live and the type of hospitals in the area you live in, key to ensuring savings for retirees. “
The survey also focused on other health insurance benefits and coverage that these policies offer, such as OPD coverage, top-up features, and the ability to add or purchase major illness insurance.
Here, too, the survey provided some interesting insights. According to the report, 47 percent of retirees did not have OPD coverage in their insurance policy. In addition, 63 percent of retirees had no serious illness insurance, while almost 33 percent were completely unaware of such plans.
The silver lining of the survey is people’s increasing awareness of their health insurance, as evidenced by the fact that 90 percent of respondents thought about buying top-up plans to improve their health insurance coverage.
The survey makes it clear that health insurance coverage needs to be increased, especially in the wake of the ongoing pandemic. Rising hospital costs seem to be the trigger for increased awareness among retirees.
Bajaj Capital’s study was conducted in India with a sample size of 799 respondents on subways and other subways. The study was conducted by the company’s outbound telecall division and was aimed at men and women aged 55 to 65. The sample was further divided into two groups – existing policyholders and directors who wanted to purchase / expand insurance coverage in the next three months.