While it is not as difficult to understand as rocket science or robotics, there is definitely merit in understanding health insurance. It is a crucial aspect of our lives, providing us with a much-needed financial cushion during medical emergencies. However, a recent survey has highlighted a concerning trend among health cover owners – no awareness about the terms and conditions of their policies. [1] As per the survey, a large percentage of policyholders are unaware of the crucial terms of their health insurance policies. This paucity of knowledge often leads to unexpected out-of-pocket expenses, denied claims, and other financial hardships during medical emergencies.
A striking lack of understanding of the coverage among insured individuals was discovered by a survey of health insurance policyholders. The most fundamental elements of health insurance are affected by the poor degree of insurance literacy.
20% of those polled were uninformed of the conditions of the coverage, 40% were unaware that Irdai was the regulator, and 90% mistakenly believed that only hospital costs paid in full were covered. Both respondents who now have health insurance and those who are considering purchasing it.
The survey results reveal that there is a clear gap in understanding health insurance terminologies among policyholders. Even among those who have already secured health insurance policies, the lack of knowledge regarding industry abbreviations is significant. The fact that 42% of policyholders were not aware of the meanings of TPA, NCB, and OPD shows that there is a considerable lack of understanding regarding critical industry terms.
Health insurance policies are often complex, containing numerous technical terms and jargon that can be challenging for laypeople to grasp. However, it is important to note that a lack of knowledge and understanding can have severe financial implications.
Without policyholders grasping the terms, they might encounter unforeseen expenses, claim denials, and financial challenges in medical emergencies.
Despite 51% of prospective buyers saying they are extremely confident about choosing a plan entirely on their own and 46% of health insurance owners saying they bought their coverage entirely on their own, there was a low level of awareness.
Even in the field of auto insurance, awareness is not very high. Less than 25% of car insurance policyholders properly grasped concepts like roadside assistance coverage, zero dep (zero deduction for depreciation), and insured’s declared value (IDV).
It is crucial to increase financial literacy and promote education among the public regarding health insurance. By doing so, we can improve coinsurance penetration in the country and ensure that individuals make informed decisions when it comes to health coverage.
The findings of the survey highlight the urgent need for health insurance providers to improve their communication and education efforts towards policyholders. Understanding insurance terms and to compare health insurance is crucial for informed decisions with health insurance copay. Therefore, policyholders should take the time to thoroughly read and understand their policies and ask their insurance providers any questions they may have.
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