Group Health Insurance

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Micro Health Insurance in India

As of 2021, India has a rural population of 64.61%. Though the country is witnessing the digital revolution, insurance has still not taken a deep root in rural areas for a variety of reasons, and one of them is low income. Micro health insurance is a great way to reach out to economically vulnerable families and provide them with financial security during emergencies. 

Understanding Micro Health Insurance(MHI)

Micro health insurance is a revolutionary concept that provides extensive and affordable healthcare coverage to economically vulnerable people in India. It has potential to revolutionise the way people pay for medical expenses, by providing comprehensive coverage at lower costs than traditional systems. The Mediclaim policy for family packages is tailored according to individual needs and provides essential benefits such as hospitalisation, ambulance service, medication, doctor’s fees, and other related services. Choose the best mediclaim policy for your family, providing comprehensive healthcare coverage and peace of mind for your loved ones.

Features and Benefits of MHI

Micro health insurance policy is the latest development in India’s push towards providing quality and affordable medical coverage to every citizen irrespective of income class.

  1. Coverage amounts for micro health insurance policies vary from INR 1 lakh to INR 5 lakhs. 
  2. Individuals up to 65 years of age can avail the policy. You can renew the policy every year for a lifetime. 
  3. Only a few insurance companies are given the license to offer micro health insurance plans
  4. Micro health policies are short-term policies specially designed for those who cannot afford a full-year Mediclaim policy with a larger amount of coverage or have fluctuating income patterns. 
  5. These policies provide coverage for hospitalisation expenses, pre-hospitalisation, and post-hospitalisation expenses. It also includes day-care treatment and AYUSH (Ayurveda, Yoga, Naturopathy, Unani, Siddha, Homeopathy) treatment.
  6. The waiting period to cover pre-existing illnesses in micro health insurance policies is only 12 months. 
  7. Moreover, these plans also offer access to networks of hospitals with tie-ups which further reduces the burden of exorbitant hospital bills resulting from unforeseen illnesses or accidents.
  8. The low premiums charged for (MHI) insurance are great advantage that makes it attractive for millions of Indians across country. Affordability is what makes the micro health insurance plan the best mediclaim policy for families of poor. 
  9. On top of this, there is an added convenience factor when considering purchasing these types of policies since they require minimal documentation or paperwork making them highly accessible and hassle-free. 

Successful Implementation of MHI Plans in India

Before the late 1990s, access to healthcare in India mostly depended on those who could afford private hospitals or clinics. This put a tremendous financial burden on families and often resulted in avoidable deaths due to a lack of timely medical care. Selecting the best mediclaim policy for your family is crucial to ensure comprehensive healthcare coverage and financial security. Micro health insurance (MHI) has provided a viable solution for low-income households by bundling small monthly contributions for individuals. They can add their families to a basic fitness package that provides payments for medical services at face value.

Underserved populations, like women and children often excluded from MHI programs, can access reliable preventive and curative care facilities closer to home. The IRDP stands for Institute of Rural Development Planning. IRDP is an academic research group in India that conducted multiple studies assessing the impact of introducing MHI on rural communities.


In India, micro health insurance innovatively shields individuals from significant medical costs, offering coverage for major health expenses. It works on the principle of paying a smaller amount periodically towards premiums, to get a substantial amount of health coverage to bear the costs of healthcare treatments. It assists individuals with limited income and those unable to undertake significant financial risks due to their minimal savings.

With this insurance, individuals can now get quality healthcare without worrying about finances. Government and private insurers, as well as customers, have warmly embraced the concept. Paving the way for more comprehensive coverage across India’s population in the future. By ensuring greater access and affordability to healthcare treatments for all sections of society.