Private Medical Insurance
Through programs such as Ayushman Bharat and many other public health initiatives at the state level, India has made considerable progress in extending public health coverage. However, for the majority of Indians, private medical insurance remains the preferred form of insurance — and with good reason.
Whereas the governmental health schemes provide crucial support to those who fall below the poverty line, private medical insurance provides an entirely different range of benefits for middle-class families and working professionals.
Coverage Breadth and Flexibility
In addition to only covering certain conditions outlined in advance and in packages, the majority of governmental health schemes only cover certain medical conditions while private medical insurance provides total coverage across a larger amount of both traditional and newly developed procedures, tests for both rare and common diseases (and their associated complications), and specialist consultation services.
Furthermore, policyholders may select how much their policy will run. Government schemes typically have set limits on how much they will provide for specific conditions. Policyholders with private health insurance can select the amount of their policy, which will often range from three lakhs (approx. US$ 4,000) to over one crore (approx. US$ 131,000).
Access to Private Hospitals and Better Facilities
Another major benefit of private medical insurance is that it allows individuals to select from a wide variety of private hospitals, including some of the best hospitals in the country (hospitals with the best infrastructure, availability of specialists, and high standards of patient care).
On the other hand, most government health schemes provide coverage for treatment only at public hospitals (governmental facilities) and a limited number of private facilities and, therefore, may not always be convenient to locate or be able to provide the medical specialty that the individual needs.
Speed and Quality of Care
Medical insurance plans that cover hospital stays at privately-run hospitals will have a shorter wait time for services, more extensive diagnostic capabilities, and more doctors available to serve you than an equivalent position. Faster access to quality care may result in better outcomes (more beneficial to you) for urgent conditions requiring timely intervention (e.g., heart attacks, cancer, and brain issues).
Customisation Through Riders and Add-Ons
You have a lot of options when you buy private medical insurance. Depending on your age and stage of life (e.g., whether you want critical illness, accident coverage, maternity coverage, outpatient services, and/or overseas treatment), you can add these coverages using riders to your policy. Family health insurance also allows you to have everyone included in one floater policy, which usually isn’t available through government insurance programs.
No-Claim Bonus and Long-Term Benefits
When you have no claims under your private insurance policy, most insurers will provide you with a gradual increase in coverage due to a no claims bonus (this can amount to as much as 100% after five years of no claims), meaning over time your coverage will be greater than when you took out your policy and therefore, your premiums will remain unchanged meaning that private medical insurance provides great long-term value.
Tax Benefits
In addition to the fact that premiums for private medical insurance can be deducted from your taxable income (under section 80D of the Income Tax Act) up to Rs 25,000 for yourself, your spouse and your children, and an additional Rs 50,000 for your senior citizen parents, private medical insurance has financial advantages beyond just being a health protection policy.
Conclusion
Government programs play a vital role in helping people access healthcare services, however, if you want to access more extensive coverage, hospitals that deliver high-quality services, favourable outcomes and protection for your long-term wealth, there are many advantages to having private medical insurance. One of the most significant financial decisions a family can make is to invest in a quality private plan.
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