Health Insurance :
Health Insurance is an insurance against the risk of covering medical expenses among individuals. With Medical costs on the rise and increased awareness about health related issues, a large number of people opt for health insurance covers. Health insurance has become one of the most important insurance policies that people opt for. A health insurance cover helps in reducing the burden of medical bills and expenditure.
IRDA regulations define Health Insurance Business as: “Health insurance business” or “health cover” means the effecting of insurance contracts which provide for sickness benefits or medical, surgical or hospital expense benefits, including assured benefits and long- term care, travel insurance and personal accident cover.Thus the term ‘Health Insurance’ relates to a type of insurance that essentially covers one’s medical expenses.
Accordingly a health insurance policy is a contract between insurers and an individual / group in which the insurer agrees to provide specified health insurance cover for a particular “premium” subject to terms and conditions specified in the policy.
In case of medical emergencies or medical illnesses (as covered and specified by the policy) the insurer agrees to pay for the expenses incurred (as per the specified amount) thereon. Health insurance is important in times of hospitalization as one gets cover from the Insurer and saves the insured from excess expenditure. For a consideration known as premium, which the assured needs to pay the insurer, the insurer agrees to cover certain medical expenses as specified in the policy.
