Health insurance is a type of insurance coverage that covers the cost of an insured individual’s medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider.
However in different countries health care coverage is commonly included in employer benefit packages and seen as an employment perk.
Health insurance in India, famously known as Mediclaim, is nothing but an insurance which covers expenditures related to required hospitalization due to a sickness or an accidental trauma. There are mainly two types of health insurance in India:
- Private health insurance
- Public health insurance
Various free Health Insurance Schemes
- Rashtiya Swasthiya Bima Yojana (RSBY)
Rashtriya Swasthiya Bima Yojana has been launched by Ministry of Labour and Employment, Government of India to provide health insurance coverage for Below Poverty Line (BPL) families. The objective of RSBY is to provide protection to BPL households from financial liabilities arising out of health shocks that involve hospitalization. Beneficiaries under RSBY are entitled to hospitalization coverage up to Rs. 30,000/- for most of the diseases that require hospitalization. Coverage extends to five members of the family which includes the head of household, spouse and up to three dependents. Beneficiaries need to pay only Rs. 30/- as registration fee while Central and State Government pays the premium to the insurer selected by the State Government on the basis of a competitive bidding.
- Employment State Insurance Scheme (ESIS)
Employees’ State Insurance Scheme of India is a multidimensional social security system which provides socio-economic protection to worker population and their dependants covered under the scheme. Besides full medical care for self and dependants, it also provides a cash benefits in times of physical distress due to sickness, temporary or permanent disablement etc.
- Central Government Health Scheme (CGHS)
The “Central Government Health Scheme” (CGHS) provides comprehensive health care facilities for the Central Govt. employees and pensioners. It also includes different facilities like dispensary, polyclinic and hospital including X-Ray, ECG and Laboratory Examinations.
- Aam Aadmi Bima Yojana
Aam admi bima yojana, a Social Security Scheme for rural landless household was launched on 2nd October, 2007. The head of the family or one earning member in the family of such a household is covered under the scheme. The premium of Rs.200/- per person per annum is shared equally by the Central Government and the State Government. The member to be covered should be aged between 18 and 59 years.On natural death Rs 30,000 On death due to accident / on permanent disability due to accident ( loss of 2 eyes or 2 limbs )Rs75,000.On partial permanent disability due to accident( loss of one eye or one limb ) Rs 37,500.A free add-on benefit in the form of scholarship to children is also available under the Scheme.