Over the years Health Insurance industry has shown a very uneven performance. However, on a whole the industry is on rise. The following were the major changes discovered over time in medical insurance:
Changes in Product design for innovation: For getting an edge over competition, companies are constantly involved in providing innovative features to products. For example, earlier there was no health insurance Coverage available which provided pregnancy benefits. With the change in time, such products are now available to help you for a healthy new beginning.
Changes in Policy term: While most of the insurance products have a Term of five to seven years lock-in, medical insurance has shifted to three years. This cap is been laid by IRDA in a pursuit to encourage better and higher health cover. For instance, the maximum Age Limitto get health insurance have increased from 50-55 to 65-70. Also, most of the companies are looking forward to provide life long renewable services.
Changes in Hospitalization and Claim settlement terms: With the passage of time, superior health care services are being offered. Now, the Insured can get the benefits of medical insurance facilities at any hospital which was earlier available only with limited hospitals. This has bought simplicity in terms and clarity in settlement. Also, the time taken by the Insurer in claim settlement is also reduced.
Changes in the terms of reimbursement: Terms and conditions on Reimbursement are now more transparent and liberal. The amount of reimbursement which the insured is eligible to receive on payment of bills and other medical expenses which are included in the health insurance coverage is now quick and easy. Such amount is increased to 50% to 100% reimbursement based on the policy terms.
Changes in the standard of treatment: With the growing danger of life threatening diseases, the standard of treatment has also increased. People now are more conscious about their health and the quality of health care services they get. Subsequently, the level of medical insurance benefits can also be raised according to the standard of living of the insured. An insured might have an access to the multiple health insurance coverage, in case of expensive treatment; the expenses can be bore by them when single policy is not sufficient to take care of all the expenses.
Such changes have been possible because of the following factors:
Growing awareness about health among the masses and their increased concern for health insurance coverage. Similarly, people have become more aware about the insurance which enables them to attain maximum out of their mediclaim.
Technological advancements: Online purchase, online payments of health insurance Premium are the health insurance tips to get cheaper and hassle free deal.
Rise in the cost of health care facility: Increasing Inflation has not left health industry untouched. The rising cost of health care has added a great deal to make people purchase health insurance coverage.
Rise in the standard of living of the people where they cannot compromise on the quality of services being offered to them. When they have Mediclaim they do not have to worry about the bills and can take advantage of superior treatment.
Tax benefits: Mediclaim and health insurance premium both have tax benefits. Under section 80D of Income Tax Act of 1961, an amount of Rs 15, 000 is exempted from tax calculation.