Insuring rural health

Health insurance continues to remain a poor cousin of life insurance. Though it is gradually reaching out to the urban customer, rural areas remain distant and neglected.

Non-profit organisations generally do not get into the areas of 'business' but this neglect has spurred Healing Fields Foundation (HFF), a non-profit organisation, to contribute towards making health insurance happen for the rural populace.

Today, Healing Fields provides its services to 2,000 families (10,000 lives) in Ranga Reddy, Warangal, Medak, Nalgonda and Mahbubnagar districts that include cover for normal delivery, caesarean and pregnancy-related expenses as well. It will be soon be spreading its wings to West Godavari district too.

The foundation has also signed a memorandum of understanding with LabourNet, an initiative of Karnataka-based NGO Maya Organic, for enabling provision of health insurance to 2,000 construction workers.

Says Mukti K Bosco, the lady who powers the organisation, "Private insurance company, HDFC Chubb, has designed a special health insurance product for us and we, in tie-up with around 10 NGOs, are ensuring its delivery" Some of the NGOs that Healing Fields works with include A P Dalit Bahujana Co-operative Federation and Cova (Confederation of Voluntary Agencies).

"It came to our knowledge that 52 per cent of the total loans taken by the rural poor from micro-finance institutions was for treating emergencies in healthcare. So, we analysed various criteria like demographics, nutrition profile, and hospital expenses and decided what illnesses need to be covered. We, then negotiated with a number of insurance companies in this regard," she adds.

The insurance product currently provides coverage for 43 illnesses ranging from fractures, poisoning to pregnancy. It has 12 hospitals including Kamineni Institute of Medical Sciences in Narketpalli and Pallavi Hospital in Warangal in its network.

The insured has to pay a premium of Rs 353 (Rs 285 for health insurance with the remaining being for personal accident benefit, registration fee and service tax) every year and is provided a coverage worth Rs 20,000 for a family of five.

However, the scheme works on a system of copay which means that a part of the expenses has to be borne by the patient as well. "The patient has to bear 20 per cent to 25 per cent of the expenses and the remaining will be provided for by the insurance cover," Mukti says, adding that this system ensures a substantial reduction in false claims.

Besides, to avail of pregnancy-related expenses coverage, the pregnant woman has to visit the doctor at least four times during the nine months. "This will ensure that the would-be mother visits the doctor regularly and takes the necessary dosages," she adds. HFF, according to Mukti, has also been shortlisted this year by a weekly insurance magazine, Asia Insurance Review, for the service provider of the year award.