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A report released by PolicyBazaar.com, an online insurance broker reveals that 96% people are aware of health insurance policy but only 69% consider having a health insurance policy.
Despite this, 43% have actually bought health insurance for themselves and their loved ones, reveals the report.
The report also shows that 53% of the surveyed individuals had bought health insurance in the past but did not renew it.
The report attributed this large number of lapsation to affordability, difficulty in understanding the product and procrastination. The report said, “Lack of affordability was the top reason for lapse among health insurance lapsers. A report on Medical Inflation and Health Insurance Products in India notes that increase in policy premiums due to medical inflation leads to customers engaging in selective lapsing where healthy and low-risk customers leave the insurer for lower premiums or downgrade their benefits. In 2021, the country registered the highest medical inflation rate among the Asian countries at 14%.”
Further, the report finds that close to 75% individuals of 28 years and above believe that health insurance is extremely important for them; this awareness increases further post 40 years of age.
Overall, the report covered close to 1700 respondents with 800 people from metro cities.