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5 reasons why Indians don't like medical insurance

By P V Subramanyam
April 04, 2015 12:00 IST
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We are sure you will agree with these reasons!

First of all let me tell you that I have medical insurance. I have no clue whether it will pay, how much it will pay, on what basis will the calculation will be made... literally NOTHING.

Why do I still have a policy? Because it keeps my mind calm.

Why don't Indians like it? Here are five reasons...

1. It is too complicated: You may or may not believe it, but most of us cannot understand the language of a medical insurance policy.

2. The mathematical calculation of how you will be paid a claim is very difficult to believe or understand.

3. Most people think 'I have a company policy' and that is sufficient. This is obviously because they do not understand risk.

4. If you have a policy for Rs 500,000 and you incur Rs 300,000 as expenses for a medical condition you think you will get paid... right? Wrong. You will be shocked to find a) room rental restrictions b) proportionate cutting of the overall bill and c) disallowed expenses... you will be lucky if you get more than Rs 250,000. And I am being optimistic...

5. Finally, a lot of expenses are unecessarily added on by some of the hospitals to inflate the cost of hospitalisaion because they know the money is coming from an insurance company and not your pocket. The default option in such a case then is mistrust!

Illustration: Uttam Ghosh/

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P V Subramanyam