Health & Personal Accident Cover Micro Insurance is a boon for the low income groups in Rural & Urban India

Often, micro insurance cover is associated with only those low-income groups that reside in rural areas and remote locations. In fact these policies are actually designed to provide a security blanket and helping hand to low income groups regardless of whether they reside in urban or rural areas. In the urban context, micro insurance targets groups like construction labourers, domestic help, daily wage earners and other groups that face risks in earning their livelihood and in their day-to-day life. Two micro insurance policies: Health and Personal Accident Cover Micro Insurance are a blessing in disguise for these groups. Let us explore how they make their life easier. 

In India’s healthcare roadmap, access to adequate and quality health care services is a huge challenge. In this tumultuous scenario, micro health insurance is now being increasingly recognized as a preferred mechanism to finance healthcare provision. Any unforeseen health calamity is a huge setback to low income groups. This is because it impacts their finances drastically often depleting their every last resource to pay for hospitalization, cost of medicines, diagnosis, transport and most importantly, loss of wages.

Advantages of Micro Health Insurance

 

·         Peace of mind.

·         Financial burden because of an unexpected illness or injury, is not incurred.

·         The low income groups do not need to take a loan/debt in case they have health micro insurance.

·         There is accessibility to good healthcare facility.

·         It also provides social security in the long run.

·         It also leads to reduction in infant/child mortality.

·         Positive impact on the health of women.

·         Quality of life is enhanced.

·         Protection at old age.

·         Health risks related to hazardous working conditions are taken care of.

Personal accident cover for low income groups as a part of micro insurance is also a blessing, considering that the risk of accident is higher for those staying in urban areas, than their rural counterparts. This types of cover come with a low insurance premium.

Advantages of PersonalAccident Cover Micro Insurance

·         Hospital and hospitalization expenses are taken care of.

·         Affordability is a huge advantage.

·         Compensation is paid when the insured person has sustained bodily injury ‘resulting solely and directly from accident caused by external, violent and visible means.’

·         This is a 24x7 cover, which means if an accident occurs on or off duty, insurance still applies.

·         Some insurance companies offer this policy to those as young as 10 years and the maximum age limit is 70 years.

·         Compensation is given in case of the death of an insured person.

·         It covers permanent total and partial disablement.

·         This type of policy also covers total and irrecoverable loss of sight of one
eye or loss of use of one hand or foot.

·         The sum insured can be as high as Rs 2,00,000.