Awareness About Health Insurance In India Health insurance is an agreement between you and the insurance company to cover for medical expenses that may be considered accidental or sudden. The insured is expected to pay a specific amount as premium toward the health insurance plan for utilization of coverage benefits. These premiums are fixed based on an assessment of risk status and coverage benefits and not based on an individual’s income. Once issues, health insurance policies can be renewed annually or monthly based on the policy plan you opt for. These health insurance policies are designed specifically to pay your medical expenses. You have a choice of opting for an individual plan or a group plan. The individual plan covers only the policy holder while the group plan covers a group of people under the same health insurance policy. The concept of health insurance goes back to the seventeenth century. ‘Accident Insurance’ was the first form of health insurance available in late nineteenth century. Before the development of health insurance, patients were expected to pay medical expenses from their pockets. With rising healthcare prices, people found it difficult to afford medical treatment. During the middle to late twentieth century, conventional ‘disability insurance’ evolved into modern ‘health insurance’ programs. The health insurance market offers challenges along with opportunities to insurance companies, especially due to rising healthcare cost. The past two decades have seen a huge increase in healthcare costs. This has compelled people to avail of health insurance coverage for themselves along with family members including dependants. Your health insurance policy is a cushion against medical emergencies. The scope of health insurance is high with healthcare solutions provided by the private sector. People prefer private healthcare sector because of better quality of care and more medical benefits and facilities. Health insurance policies are available against all sorts of health risks, for all age groups and for all income levels. The concept of insurance is closely concerned with safety and security. It works as a shield from unforeseen circumstances. Indian health insurance is categorized into cashless hospitalization and medical reimbursement. Cashless hospitalization is a facility where the person covered under health insurance policy is not required to pay hospitalization expenses at the time of discharge. The settlement is done directly by the health insurance company. Medical reimbursement process requires the individual to bear the entire expenses of hospitalization. After discharge, the policy holder may claim reimbursement from the insurance company. Health insurance not only provides financial stability but also contributes greatly in leading a stress-free life.