Page 211 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices Mahesh Kumar Sarva, Lovely Professional University

Notes Unit 12: Health and Catastrophe Insurance

CONTENTS
Objectives
Introduction

12.1 Features of Health Insurance Policy
12.2 Procedure and Benefits of Health Insurance Purchase
12.3 Claim Settlement Procedure

12.4 Types of Health Insurance Policy
12.5 Catastrophe Insurance
12.6 Summary
12.7 Keywords
12.8 Review Questions

12.9 Further Readings

Objectives

After studying this unit, you will be able to:

Define the features of health insurance policy
Explain the procedure and benefits of health insurance purchase
Discuss the claim settlement procedure
Describe the various types of health insurance policy
Explain the concept of catastrophe insurance

Introduction

In the previous unit, you have studied about the meaning of motor insurance. It has explained
the various types of motor insurance policy along with the procedure for payment of claims
under motor insurance as well as third party claims.
In this unit, you will study about health and catastrophe insurance. With the increasing cost of
health services and medical bills which a common man cannot afford, this class of insurance has
a growing market. It is estimated that a family spends an average of 10% of its monthly income
on health care. In India where there is no Social Insurance for the public the individual has to
take care of himself and his family. A prolonged illness or disability can spell havoc for the
family budget and upset all the planning.

While the importance of health Insurance cannot be denied, it is unfortunate that so far in India
the Health Insurance policy is being purchased by families and individuals who can afford to
pay the medical bills. But the Govt. of India is putting all its efforts to encourage people to buy
health insurance and specialized insurance companies are promoted which are exclusively
dealing in health insurance. The life insurance companies are also permitted to issue the health
insurance policy.

206 LOVELY PROFESSIONAL UNIVERSITY