Health insurance portability, which will be allowed for individuals from July 1, should be extended to group medical policies, said a new study released on Friday.
“It is necessary to cater to the needs of people when they switch jobs, are laid-off or attain superannuation,” the study by Foundation of Research, Training and Education in Insurance in India said.
The study noted the Insurance Regulatory and Development Authority can create a positive growth environment if it were to legitimise and encourage additional sales channels to serve the consumer; strive for portability of group and long-term policies; work with the financial sector to create savings and loan products which give health cover and coordinate with the health ministry on policy initiatives.
On the policy front, the study called for strengthening of healthcare delivery infrastructure and mandatory health insurance from the nursery level to college. Industry, on its part, needs to grow the market, it noted.
According to the report, the key initiatives it needs to take are: product design and innovations; making primary care and General Practioners as the first line of treatment for insurance cover; investing in new channels of distribution for greater accessibility; investing in consumer feedback, research, education and agent training.
The health insurance industry in India, though growing at a healthy rate, has a low penetration of only 4.22 per cent of the population.
