Around 51% of health insurance policy owners in India are underinsured, in spite of rising sales of health cover, according to a report by Apollo Munich Health Insurance.
The report, which included around 700,000 respondents in 82 cities across the nation, states that men are slightly more at risk of underinsurance, as they comprise 52% of those underinsured. This means their purchased coverage may not be enough to cover any possible medical emergencies.
Even though more Indians are obtaining health insurance, they usually choose the lowest sum insured policy, without understanding the entire process on how to choose the appropriate health plan.
Some of the reasons cited are lack of awareness on choosing the right policy, overdependence on corporate health schemes, and wanting to pay a premium only up to the limit prescribed by the country’s income tax laws.
Antony Jacob, CEO of Apollo Munich Health Insurance, said: “Underinsurance is a somber problem as it not only results in increased stress and sudden out of pocket expenditure for policyholders during times of medical exigencies, but also gives them a false sense of assurance of being covered.”
Health insurance is not just a way to save on taxes, so clients must always be conscious about choosing the right sum insured for themselves and their family, Jacob added.
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