A survey conducted by BigDecisions shows that 95% Indians do not have enough health insurance cover based on current healthcare costs in India.
Around 10,000 users were surveyed using BigDecisions health insurance tool which helps determine how much coverage individuals need based on their age, family situation and city. The survey was done over a period of 12 months across eight cities spread over three age groups (26-35, 36-45 and above 45).
The results found that consumers have low amount of insurance cover as compared to how much is actually needed. The survey analysed how much health coverage consumers have across different cities. Surprisingly, consumers with low insurance cover came mostly from top cities and are affluent and tech savvy. Hyderabad is the least insured city in India with 69% of people still underinsured in the age group of 26-35 years. In the age group of 36-45 years, Jaipur is the least insured city (70%) and in case of 45 years and above, 72% of consumers in Kolkata are underinsured.
Thus the data shows that consumers above 45 years of age are a high risk group because they are least prepared for health emergencies as they are underinsured by an average of 69%.
The survey claims that most Indians are overconfident and underprepared for any future health crisis. Many assume that the insurance coverage consumers have today through their employers will be adequate. But what investors are overlooking is how age and growing family leads to greater need for medical care or hospitalization.
While healthcare costs have been rising quickly, the cost in India is still low compared to developing world standards and it is possible that private health costs will only increase over time.