Health Insurance For Disabled Individuals in India

Persons with disabilities can easily avail medical facilities without any hassle in developed countries, but, for developing nations like India, the private healthcare infrastructure does not always include amenities for people like them. In February 2018, a ruling by the Delhi High Court stressed that insurance companies could not deny health or life cover to persons with disabilities because of their disorders and has made it mandatory for the insurance company to make a decision on the waiting period and premium, as per the curability or recurrent nature of the disability. While accidental disability is already covered by most health insurance providers, this ruling prompted the incorporation of congenital and mental disabilities as crucial coverage options under different insurance plans.

However, despite a court ruling, not all insurance companies have instituted health insurance for the disabled in India and the major contribution in this field has come primarily from the government. Hence, health insurance plans offering financial and medical support to disabled people who are dependent on their families, are all organised by state agencies.

Features of Health Insurance For The Disabled in India

Let us first look at the different features that are available under such health insurance plans -

1.Congenital Disability and Insurance Coverage 

Health insurances for people with disability cover the different kinds of congenital disorders and offer insurance coverage for the same. While most insurance providers do not have this clause, LIC has included a congenital disability rider under its Jeevan Bharti 1 plan for women. This feature is available in several endowment plans offering financial support and security to handicapped individuals. In certain cases, incorporates greater facilities in comparison to general health insurance plans.

2.Accidental Disability Coverage 

Unlike congenital and handicapped disability coverage, accidental disability is a high-risk coverage that is offered under most regular health insurance policies. It offers insurance coverage for partial, temporary or permanent disability and medical emergencies caused by an accident. This option can be easily obtained by people without a specified disability option.

3.High-Risk Coverage 

Disability health insurance plans understand the need for high-risk coverage of people with disabilities and this feature safeguards their dependency on their family members, in case of their untimely demise. While it costs more than normal insurance policies, this coverage option seeks to effectively secure the future of a disabled person against financial shortage and insolvency.

4.Tax Benefits 

People with disabilities can avail tax benefits under Sections 80U and 80DD of the Income Tax Act, respectively. Under the first section, a disabled individual can receive a tax benefit of INR 50,000 if they have 40% to 70% disability , while someone with 80% disability can avail a tax exemption of INR 1 Lakh. As per the second section, the life assured’s family members can also receive tax benefits. The amount of tax benefit is equal to that guaranteed under the former and corresponds with the same percentages of disability an individual has.

Best Health Insurance Plans For Disabled Individuals

The following are the health insurance schemes by the Government of India for the disabled -

1.Nirmalya Health Insurance Scheme 

The Nirmalya Health Insurance Scheme is a health insurance plan launched by the National Trust for individuals diagnosed with Cerebral Palsy, Autism, Mental Retardation and multiple disabilities. It is a comprehensive insurance plan that covers the above gamut of congenital disorders and is available in any part of the country except Jammu and Kashmir. To be eligible for this health insurance scheme, no prior medical screening is required; individuals only need to be registered with the National Trust to avail its facilities.

There is no age limit to be eligible for this scheme and it comes with a sum assured amount of INR 1 Lakh. It also offers a hospitalization cover of INR 70,000 and OPD expenses upto INR 14,500. Some of its added benefits include an attractive ongoing therapy coverage of INR 10,000, an alternative medicine limit of INR 4500 and transportation costs of INR 1000. With a considerate and affordable rate of premium corresponding with the family income of the life assured, this policy is a good option to financially secure the future of any individual with disabilities.

2.Swavalamban Health Insurance Scheme 

The Swavalamban Health Insurance Scheme was launched by the Government of India. This is a tailor made policy, designed by the New India Assurance Company. It is a comprehensive plan that provides insurance coverage to people with blindness, low vision, leprosy, hearing impairment, motor disability, mental retardation and mental illnesses.

To be eligible for this plan, an individual should be a minimum of 18 years of age and a maximum of 65 years of age and must have the illness certified by a competent authority. This plan is specifically targeted for people within the lower income bracket, as the life assured’s family income has to be less than INR 3 Lakhs. It offers a sum assured amount of INR 2 lakhs and a premium amount of INR 3100, payable annually at an interest rate of 10%. The coverage option under this plan is extended to the disabled person, their spouse and maximum two children. The policy can be issued only if the life assured provides a proposal form, a premium payment receipt, an income certificate and an identity proof.

Take Away

These are the two major health insurance policies guaranteed to people with disabilities in India. The features mentioned above will hopefully aid you in making a wise choice while deciding to purchase or invest in a disability health insurance policy. The schemes by the Government of India are comprehensive options and offer monetary independence to disabled people in the absence of their family members. However, in comparison to the population of such people in India, the number of health insurance policies are very few and we can only hope for a better judgement by insurance providers to bring them under their financial schemes and plans soon.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.