The low penetration of health insurance in India is due to lack of awareness. Is there a way that this problem can be overcome?
While awareness about health insurance in India is certainly low, there has been a significant improvement in the past decade. A lot of people in the 40-45-year age group have either experienced a situation where they needed health insurance or know of somebody who availed of it. The business itself has grown phenomenally in the past 10 years. In 1997, it was worth Rs 400 crore, and today the figure is Rs 9,000 crore. So the awareness on medical insurance is growing.
While the segment has grown rapidly, many customers can't decipher the jargon used in policy documents. Should the Irda devise a uniform format that is devoid of jargon?
It benefits the industry if customers understand the features of a policy. It's like a new gadget packed with the latest technology. If you don't know what you can do with it, you won't buy it. So there is need to make health insurance more comprehensible.
As far as the regulator's role is concerned, all documents and material need to be cleared by Irda. But nothing should stop an insurer from wording its policies in a manner that even a 12-year-old can understand them. We try to use simple language in our communication and brochures so that there is no scope for ambiguity. I tested this out with my 16-year-old son and found that he was able to understand the features of one of our policies.
Some agents don't inform the buyers about exclusions or lure them with false promises. Is mis-selling a big problem in health insurance?
Mis-selling can happen in various ways. For instance, many agents try to attract business by convincing the customer that no medical tests are required before buying a health cover. However, a medical check-up benefits a customer as it can help detect a condition that can be cured if it is in the early stages. An agent might sell a policy without a medical check-up, but it is the customer who faces problems when he makes a claim.
Do third party administrators (TPAs) create problems for customers instead of helping them?
If a TPA lets down the customer, it is the insurance company that is to blame. The quality of service rendered by the TPAs depends on how the insurer manages them. We are very satisfied with the way our administrators work.
