The state of Maharashtra has
emerged on top for collecting highest health insurance premium worth over Rs
4,370 crore as of financial year 2012-13, according to a sector-specific
analysis conducted by apex industry body ASSOCHAM.
“Clocking a growth rate of over
76 per cent, health premium collected by Maharashtra had increased from over Rs
2,480 crore in 2009-10 to over Rs 4,370 crore as of 2012-13,” according to an
analysis titled ‘State-wise health insurance: An overview,’ conducted by The
Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Tamil Nadu (Rs 1,780 crore)
and Karnataka (Rs 1,400 crore) also figure among top states for collecting high
health insurance premium throughout the country.
“Maharashtra, Tamil Nadu and
Karnataka together account for over half of the gross health premium income
worth over Rs collected in Indian states and union territories as of FY 2012-13
on the back of several new initiatives to expand coverage to vulnerable poor
and to deepen the benefit coverage taken by the Central and State Governments
to promote health insurance coverage and spending in the country,” said Mr D.S.
Rawat, secretary general of ASSOCHAM while releasing the findings of the
chamber’s analysis.
“The Central government should
work towards providing basic minimum health insurance coverage to all citizens
at nominal rate of premium,” said Mr Rawat. “India is grappling with poor
penetration of health insurance and the government must take steps to increase
the same.”
In terms of growth rate, Bihar
has ranked on top as the health insurance premium collected by the state
increased significantly from just about Rs. 7 crore in 2009-10 to over Rs 315
crore in 2012-13 thereby clocking over 4,000 per cent rate of growth, noted the
analysis done by the ASSOCHAM Economic Research Bureau (AERB).
The total health insurance
premium collection in India has also grown at a growth rate of over 88 per cent
i.e. from about Rs 7,980 crore to over Rs 15,000 crore during the aforesaid
period.
Andhra Pradesh is the only
state where the health insurance premium collection has dipped by over 13 per
cent i.e. from about Rs 800 crore in 2009-10 to about Rs 695 crore in 2012-13.
Increase in healthcare costs,
rise in per-capita incomes, increasing burden of new diseases, health-related
risks and high financial burden on poor eroding their incomes are certain key
factors contributing towards the growth of health insurance market in India
which is growing at a compounded annual growth rate (CAGR) of about 20 per cent
and is likely to cross Rs 32,000 crore mark by 2016-17 from the level of about
Rs 13,000 crore recorded as of 2011-12 owing to rising income levels together
with growing health insurance premium, according to an ASSOCHAM study titled
‘Health Insurance in India-A review,’ released last year.
The ASSOCHAM projection is
based on average of the compounded annual growth rate (CAGR) of about 6.7 per
cent for income levels of people during 2004-05 and 2011-12 together with 32.5
per cent CAGR of health insurance premium during 2006-07 and 2011-12.
Over 65 per cent of people
covered by health insurance sector in India come under the ambit of private
companies, whereas the public insurance companies account for coverage of only
35 per cent people, pointed out the study.
While the public sector
insurance companies garner maximum share of premium to the tune of about 61.5
per cent arising out of health insurance sector in India, the private health
insurers account for just about 38.5 per cent of the premium.
Though, individual agents
bring in most business thereby accounting for about 73 per cent share, however,
with a share of about 37 per cent, the direct business is the major contributor
in terms of premium collected followed by individual agents (32 per cent share)
and brokers (21 per cent share), added the ASSOCHAM study.
While referrals constitute a
meager 0.1 percent in terms of both the number of policies sold as well as the
medical insurance premium they collect.
With the health insurance
assuming greater significance by the day, the ASSOCHAM has suggested the
Insurance Regulatory Development Authority (IRDA) to evolve a mechanism which
shall ensure that private insurance companies do not skim the market by focusing
on rich and upper class clients and in the process neglect a major section of
India’s population.
The success and sustainability
of health insurance sector in India would depend upon the development of a
strong governance framework, efficient management and monitoring systems
alongside introduction of cost containing and product improvement mechanisms,
the study added further.
Addressing the coverage gap is
a huge challenge for the insurance industry owing wing to low public spending
on health together with high levels of informal or unorganized labor, a large
dispersed rural population, high levels of poverty and lower number of service
providers serving the poor, noted the ASSOCHAM study.
The priorities for government
for healthcare financing must be such that it covers the basic objectives of
affordability, reach and quality of services, it suggested.
In its study, ASSOCHAM has
called for an alternative cost sharing mechanism where health insurance is
considered as an efficient mechanism through pooling of health care burden so
that all sections of the society are able to afford healthcare services.
State-Wise Gross Direct Premium Income – Health(in Rs Crores)
State
|
2009-10
|
2012-13
|
Growth
|
Maharashtra
|
2481.1
|
4373.45
|
76.3
|
Tamil Nadu
|
1161.4
|
1784.02
|
53.6
|
Karnataka
|
718.1
|
1415.52
|
97.1
|
West Bengal
|
406.3
|
993
|
144.4
|
Gujarat
|
524.2
|
886
|
69.0
|
Haryana
|
179.1
|
789.1
|
340.5
|
Andhra Pradesh
|
801.1
|
695.4
|
-13.2
|
Kerala
|
183.6
|
609
|
231.7
|
Uttar Pradesh
|
244.6
|
553.9
|
126.4
|
Bihar
|
7.5
|
315.2
|
4086.2
|
Rajasthan
|
62
|
165.6
|
167.0
|
Punjab
|
55.3
|
158.6
|
186.7
|
Madhya Pradesh
|
72.6
|
156.5
|
115.4
|
Orissa
|
15.6
|
113.5
|
625.3
|
Chhattisgarh
|
10.7
|
87.2
|
708.4
|
Jharkhand
|
55.7
|
78.7
|
41.4
|
Assam
|
13.4
|
75
|
456.8
|
Uttarakhand
|
14.2
|
37.7
|
164.5
|
Himachal Pradesh
|
6.6
|
26.1
|
295.0
|
Jammu & Kashmir
|
3.1
|
10
|
226.5
|
Sikkim
|
0.2
|
1.12
|
319.8
|
Total
|
7979.4
|
15010
|
88.1
|
Email: pressroom@assocham.com
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