Page 304 - DMGT303_BANKING_AND_INSURANCE

Unit 14: Marine and Motor Insurance

3. Detarrification: Uptil now the regulator was dictating the general insurance premium Notes
tariff rates. Recently, the Insurance Regulatory and Development Authority (IRDA) has
notified that from 1st January 2007 all branches of Insurance except Motor third party
would be de-tariffed.

14.6 Medical Insurance/Health Insurance/Mediclaim

It is a very fast and stressful life and one can meet different types of illnesses and diseases. With
increasing living costs, the cost of medical treatment is also rising. A common man becomes
sicker by paying the huge medical bills, than the disease itself.
Medical bills and money involved should be the last things to think about when a person or his
relative comes across such an uncertainty of life. Here the answer to such worries about health
problems is health or medical insurance.

Some Features of Health Insurance

1. Health insurance, also known as Mediclaim offers protection against unforeseen and
unexpected medical emergencies. In situations like unexpected illness or accident the
health insurance takes care of costs of treatment, hospitalization and other medical services.
2. Some medical insurances that also provide support for pre as well as post-hospitalization
- like costs of medical tests or purchase of medicines.
3. Premium paid for Health Insurance Policies help us in getting tax saving benefits under
Section 80D of Income Tax Act up to a maximum amount of Rs.10,000, while a senior
citizen enjoys the maximum limit of Rs.15,000.
4. The contract may be renewable annually or monthly.
5. The type and amount of health care costs that will be covered by the health plan are
specified in the beginning.
6. A Critical Illness rider option to cover medical expenses may be added whereby the
amount insured in the policy will be given to the customer in case he/she encounters that
critical illness during the time period of the policy.
7. Health insurance may be provided through a government-sponsored social insurance
program, or by private insurance companies.
8. It may be purchased on a group basis (e.g., by a firm to cover its employees) or purchased
by individual customers. The covered groups or individuals pay premiums for protection
from huge or unexpected healthcare expenses.

Coverage

Today, most of the comprehensive private health insurance programmes cover:
1. The cost of routine and preventive checkups
2. Emergency health care procedures

3. Cost of most prescription drugs
4. Sometimes covers disability or long-term nursing or custodial care needs.

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