No doubt that the fact that major population of India is from rural areas and is more prone to illness and injuries. According to a recent statistic, the rural community in India comprises 64.61% of the total population. The health sector in such areas is still developing and limited. That’s where the specific type of health insurance known as Micro Health Insurance came into the picture. So, without any further ado, let’s learn about micro health insurance definition and its benefits through this blog post.
What is Micro Insurance?
Micro health insurance is a type of health insurance designed to provide coverage for low-income individuals and families, as well as those in rural or remote areas who may not have access to traditional health insurance. It typically offers basic health coverage at lower premiums and with fewer benefits than traditional health insurance plans.
Features of Micro Health Insurance
Some of the key features of micro health insurance include:-
- Targeted at low-income individuals and families: Micro health insurance is designed to provide affordable health coverage to people with low income who might not be able to afford traditional health insurance.
- Low premiums- Micro health insurance plans are designed to be affordable, with premiums that are typically lower than those of traditional health insurance
- Basic coverage: Micro health insurance plans typically provide basic coverage for a range of health services, including primary care, hospitalization, day care treatment, and emergency care. They may also include preventative services such as immunizations and health education.
- Tenure- This policy comes with a tenure of a year One can renew the plan lifelong without any issues.
- Age eligibility of policyholder– The policyholder should be 65 or less. Furthermore, this insurance does not require medical check-ups before purchase, and it covers all family members when taken on a family floater basis.
Benefits of Micro Health Insurance Policy
- One of the primary benefits of micro health insurance is that it can be more affordable than traditional health insurance It typically has lower premiums than traditional health insurance, which can make them more accessible to people with low incomes who might not be able to afford it.
Another crucial feature of micro health insurance is that communities often base it. This micro insurance means that the policies are designed to meet the specific healthcare needs of a particular community. Local organizations, community groups, or microfinance institutions may offer micro health insurance policies. Micro health insurance customizes healthcare coverage for specific communities, ensuring access to necessary healthcare services for individuals and families.
- Micro health insurance policies can also provide basic healthcare coverage for a range of services. It also includes primary care, hospitalization, and emergency care. This can help individuals and families avoid catastrophic healthcare costs and access necessary medical care.
Importance of Micro Health Insurance in India
Micro health insurance plays an important role in India’s healthcare system, where a large portion of the population lives below the poverty line and does not have access to adequate healthcare services. The objective is to provide financial support to the people of rural areas. Apart from this, the Government of India has introduced several health plans for the backward class of our country that including the Ayushman Bharat Scheme or the Pradhan Mantri Jan Arogya Yojana or PMJAY. Another scheme introduced is the Aam Aadmi Bima Yojana scheme.
Conclusion
Micro Insurance has been beneficial to many people and has proved to be a successful venture in our country.