Syed Meraj Naqvi, CEO & Principal Officer, Riskbirbal Insurance Brokers
In a world where uncertainties loom large, the importance of health insurance cannot be overstated. Especially in India, where healthcare costs are skyrocketing, investing in comprehensive health insurance plans is not just prudent; it’s imperative. From an employee and employer perspective, the benefits of prioritising health insurance extend far beyond mere financial security. Let’s delve deeper into why Indians must pay more attention to health insurance plans.
From the Employee’s Perspective:
- Combating Rising Healthcare Costs: According to a 2023 report by the National Health Authority of India, hospitalization costs in India have increased by an average of 10-12% annually in recent years. This highlights the growing need for financial protection against such rising expenses. Comprehensive health insurance plans act as a financial shield, covering hospitalization costs, surgeries, and other medical expenses. This ensures individuals can focus on recovery without the crippling worry of financial strain.
- Protection Against Critical Illnesses: The financial impact of critical illnesses can be devastating. Fortunately, health insurance plans offer coverage for critical illnesses, including cancer, heart disease, and kidney failure. These plans provide financial support for treatments, surgeries, and medications, allowing individuals to prioritize recovery without the added stress of financial constraints.
- Access to Quality Healthcare: Having a good health insurance plan can grant access to a wider network of hospitals and healthcare providers, often including renowned specialists and advanced treatment facilities. This ensures individuals receive the best possible care without facing the burden of hefty medical bills, ultimately allowing them to prioritize their health and well-being.
- Financial Security for the Family: As per a 2021 report by the National Sample Survey Organisation (NSSO), over 68% of healthcare expenses in India are borne by households. Many health insurance plans extend coverage to family members, ensuring their health and well-being are also protected. This provides peace of mind, knowing that in times of medical emergencies, the financial burden of treatment won’t fall solely on the primary policyholder.
- Tax Benefits: Investing in health insurance plans offers additional financial advantages. Premiums paid towards health insurance qualify for tax deductions under Section 80D of the Income Tax Act. This incentivizes individuals to prioritize their health while also optimizing their financial planning
- Addressing the Rise of Lifestyle Diseases: With changing lifestyles and increasing prevalence of sedentary habits, India is witnessing a surge in lifestyle-related diseases like diabetes, hypertension, and cardiovascular diseases. Fortunately, many health insurance plans offer coverage for these conditions, ensuring individuals can manage their health effectively without worrying about the financial burden of treatment.
- Protection Against Medical Emergencies: Medical emergencies can strike unexpectedly, leading to substantial financial hardship. Health insurance plans serve as a safety net during such times, covering hospitalization expenses, surgeries, ambulance charges, and more. This financial stability empowers individuals to focus on recovery without facing financial ruin.
- Inflation Protection: Healthcare costs are subject to inflation, increasing year after year. Health insurance plans offer valuable protection against this inflation by covering medical expenses based on current costs and inflation projections. This ensures that individuals are shielded from the impact of rising healthcare costs in the future, safeguarding their savings.
- Preventive Care Benefits: Many health insurance plans go beyond just covering medical emergencies. They often offer preventive care benefits such as regular health check-ups, vaccinations, and wellness programs. By promoting preventive healthcare measures, these plans help individuals maintain good health and detect potential health issues at early stages, potentially avoiding the need for expensive treatments in the future.
- Peace of Mind: Ultimately, investing in a health insurance plan provides invaluable peace of mind. It eliminates the stress associated with the unknown financial burden of unexpected medical expenses, allowing individuals to focus on leading healthy and fulfilling lives with the reassurance that their health and well-being are protected.
From the Employer’s Perspective:
Offering comprehensive health insurance plans as part of an employee benefits package can be incredibly beneficial for both employers and employees. Here’s how:
- Employee Retention and Attraction: A 2022 survey by Aon Hewitt revealed that over 70% of Indian employees consider health insurance as a crucial factor when choosing an employer. In a competitive job market quality health insurance coverage is a significant factor for job seekers when evaluating offers and for existing employees when considering staying with a company. Offering such plans can enhance employee retention and attract top talent, contributing to a more stable and skilled workforce.
- Employee Well-being and Productivity: A healthy workforce is a productive workforce. By providing access to health insurance, employers demonstrate their commitment to employee well-being, leading to higher morale, reduced absenteeism due to illness, and ultimately, increased productivity.
- Cost Savings: Investing in employee health insurance can lead to long-term cost savings for corporations. By promoting preventive care and proactive management of employee health, companies can potentially reduce healthcare costs associated with treating chronic illnesses and preventable conditions. Additionally, a healthy workforce may require less sick leave, further minimizing operational costs.
- Legal Compliance: In many jurisdictions, including India, providing health insurance coverage to employees is a legal requirement. Ensuring compliance with relevant regulations not only avoids potential legal penalties but also fosters a positive relationship between the corporation and regulatory authorities.
- Corporate Image and Reputation: Offering robust health insurance benefits can significantly enhance a company’s corporate image and reputation, both internally and externally. Employees perceive employers who prioritize their health and well-being
In conclusion, the evolving landscape of health insurance in India underscores its critical importance for both employees and employers. Addressing the gaps and investing in robust health insurance plans is essential for navigating the complexities of healthcare in India, ensuring financial security, and overall well-being for individuals and corporations alike.
