What Is Micro Health Insurance And Why Is It Important?

Microinsurance is a type of insurance designed specifically for lower-value assets, such as those with a low income or a lack of savings. We are all aware that India is a developing country with a significant portion of the population living in rural regions with limited access to dispensaries and clinics. According to a recent report, India's rural population accounts for 65.53 percent of the country's overall population.
They make a living by farming or operating small enterprises. Worst of all, because of a lack of understanding, rural families are more susceptible to diseases. When a medical emergency arises, the family is unable to address the problem because they cannot afford medical services or adequate treatment. It is thought important to get health insurance for family members, especially in recent times when the world is buzzing with a pandemic like COVID-19. To know more about micro health insurance, read on.

What are the features of Micro Health Insurance?

Following are the features of Micro Health Insurance 

1. Even though this is a Micro Insurance plan, the maximum amount covered is limited. It normally costs between Rs 1 lakh and Rs 5 lakh.
2. Micro Insurance businesses work on the idea of making these types of insurance affordable to the poor, therefore premiums are incredibly cheap, and they focus on providing high-quality healthcare at a low cost.
3. Micro Insurance provides one-year coverage for its plans.
4. There is also the option of obtaining the full insurance on a family floater basis, which will cover all family members.
5. Because the coverage amount is limited, no pre-entrance health examinations are required when purchasing the plan.
6. There is a maximum age limit of 65 years.
7. The most appealing and profitable feature of a Micro Insurance is that it includes a lifetime renewal benefit.

What Are The Benefits Of Micro Health Insurance?

Following are the benefits of Micro Health Insurance -

1. The pre-hospitalization charges are also covered by the micro health insurance.
2. There is a documentation requirement for claiming insurance even after you have purchased it. The micro health insurance policy ensures that one does not have to go through the additional trouble of such a time-consuming procedure and facilitates the release of post-hospitalization payments.
3. The childcare treatments are also covered by the micro health insurance.
4. Some folks are unable to pay even the expense of an ambulance. In addition, the insurance policies ensure that the cost of an ambulance is paid by the system.
5. In India, the majority of health insurance policies feature an extensive network of hospitals and clinics that assist the policyholder in the event of an emergency.

What Is The Major Concern?

Financial disaster and destitution are the two top worries of out-of-pocket spending, according to a recent poll. According to the statistics, 100 million individuals have been forced into poverty owing to a shortage of medical care payments.
Health insurance programmes and general taxes are used by many industrialised countries. However, this may not be the case in poor or emerging countries with astronomically high GDPs (Gross Domestic Product). The major reason for this is that they do not have a large tax base, which results in a decrease in medical expenditures. The active engagement of the individual and the availability of the services supplied by the health insurance policy against the monthly/yearly premiums paid by policyholders are the essential criteria for accurately recognising any insurance programme.

Endnotes

Many individuals have benefited from micro health insurance, and it has shown to be a successful endeavour in our country. People are becoming more and more accountable for their own and their families' health as a result of increased social awareness of various ailments. Various NGO (Non-Governmental Organisations) and semi-public organisations have offered assistance in this regard. In our nation, there are certain public health services that provide free basic health care and organise check-ups for all persons who are poor or underprivileged. It is also a collaborative effort on the part of the government, but due to our growing population, it can be difficult to reach individuals from various walks of life at times.

Also read- How To Avoid Health Insurance Claim Rejection?

Reasons Why Health Insurance Is Essential?

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.