Insurance Providers Target Only Rich And Affluent In India


Along with Apollo Munich, other insurer providers like Cigna TTK Health Insurance, Religare Health and Max Bupa also have introduced insurance policies with a cover of 50 lakh to 1 Crore. But the question here is why only rich and affluent people are targeted for such expensive insurance products? "Historically, HNIs have relied on their savings to pay for healthcare expenses. However, now they are beginning to realise the risk that rising healthcare inflation poses. This is a segment that seeks high-end medical services and treatment using new technologies, and hence, the level of insurance they require is higher," said Sandeep Patel, MD and CEO, Cigna TTK Health Insurance, reports Economic times.

All these expensive policies accompany wide range of benefits like maternity benefits with fewer restrictions, coverage for consultation fees, diagnostic tests, annual health check-ups and reimbursement of pharmacy bills. However, it has been observed that many independent insurance providers are not convinced with these high insurance covers thinking that people can always go for a combination of regular health cover and critical illness cover. This in turn will provide with the same facilities but at cheaper rate.

"This, in a sense, is over-insurance. Typically, a cover of 10 lakh would be considered adequate for an individual. If required, people can add a critical illness cover to the protection portfolio," said Arvind Laddha, CEO, Vantage Insurance Brokers, reports Economic times.

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