According to a recent report by Lancet, a medical journal, India’s healthcare spending is the lowest among the G20 nations.
In the Union Budget 2024, the insurance industry expects the government to focus on a single health insurance scheme and ensure universal delivery. The Ayushman Bharat health insurance coverage should be the standard for everyone's insurance coverage. The scheme has been very successful with more than three crore beneficiaries utilizing the scheme for insurance since inception in 2018.
Says Sanil Basutkar, co-founder and head, product, and marketing, Bharatsure: “At present, the scheme covers around 30 crore Indians that form part of the poor and vulnerable population in the country. But this should be expanded to other vulnerable groups. There are more than five crore Indians that are above the age of 70 and most of these citizens do not have an insurance policy and form an integral part of the vulnerable population. The government is very likely to bring in this coverage in the budget. Extending this scheme to such groups is critical to ensure the health and financial stability of the country. The scheme can then gradually move forward to cover other population groups.”
Government schemes supporting insurance inclusion significantly impact the financial well-being of individuals and communities, especially those in underserved and vulnerable segments. These initiatives aim to make insurance coverage more accessible and affordable, fostering economic security and resilience against unforeseen risks. By providing financial protection and promoting economic stability, these schemes help individuals and communities thrive in the face of uncertainties.
Says Rajiv Gupta, president, PB Fintech: “Looking ahead, we anticipate the government will launch health schemes to protect the country’s rapidly growing aging population. By 2047, this demographic is projected to surpass the 0-14 age group, constituting 30 per cent of India’s population, with 60 per cent lacking income to cover healthcare expenses. Addressing this issue through inclusive health schemes will be crucial for ensuring their well-being and financial security.”
In the interim budget, the government increased the allocation for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), a flagship scheme that provides a cover of Rs 5 lakh per family per year for secondary and tertiary care hospitalization across public and private empanelled hospitals in India, to 12 crore families, to 7200 crore and Rs 646 crore was assigned for the Ayushman Bharat Health Infrastructure Mission (PM-ABHIM).
Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance, said that, as we approach the Union Budget 2024, we must focus on inclusive growth and financial security for all citizens. “Universal health coverage should be prioritized, ensuring all citizens can access quality healthcare. This aligns with our commitment to bridging the economic disparity and fostering social well-being. Moreover, insurance for SME and MSME sectors is essential to safeguard against significant losses due to natural calamities. Implementing parametric property insurance can mitigate the gap between insured loss and actual loss, ensuring a quicker and fairer settlement process. Additionally, extending crop insurance coverage to non-loanee farmers is vital for protecting our agrarian communities and ensuring their financial stability. Addressing these key areas can create a robust financial ecosystem that empowers our citizens and fosters a financially secure and resilient India. Let's work together to bridge the protection gap and unlock our nation's full potential."