Get Insured Even After 65 Years!

Al the senior citizens now need not worry about their health problems as they can get insured even after 65 years. IRDA has asked the insurance companies to make health cover affordable to all senior citizens in the country. It is certainly an encouraging step been taken by IRDA which will give some relief to those who could not get themselves insured at an early age. However, before introducing such a health insurance system, all the implications which might come in the way should be thoroughly studied.

I believe that one of the most common complaints registered by ageing people is about insurance companies denying renewals. Therefore, if this new system is introduced, people should be given guaranteed renewal of their insurance without any upper age limit. However industry experts say that people should embrace health insurance at an early age so that insurers could distribute their risk better. I also feel there is no free lunch in today’s world and therefore government should take responsibility to provide health security to the senior citizens.

In my view, this programme can be begun with those who are working in the organized sector from the day they take up employment and then it can embrace those working in unorganized sector as well. India is a country where a lot can be achieved in health insurance sector if the companies come up with even a competitive premium scheme. But I think the programme needs to be designed in such a way that the employee will not have to pay premium after retirement. All the money should be collected when the person is in his or her employment. IRDA should also take care of the profitability part of insurers.

We can certainly expect a lot of health insurance products selling in the country as soon as FDI norms for this industry are relaxed. Currently Foreign Direct Investment (FDI) in this sector is 26% which is likely to be increased to 49%. If it happens, it is expected that a minimum capital of Rs. 50 crore can come in form new entrants who in my opinion will benefits the consumers to a large extent. They can get better pricing and better deal when competition intensifies among all the existing and new players in the market.