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Gone are days when health insurance was considered a luxury. Nowadays, most of the people are aware of the damage that can be caused by any sickness. People also have started understanding that curing any sickness takes not only a lot of time but also a lot of money. The private companies are not going to pay for the days the person is sick. Thus, the sick employee loses the wages, as well as, the money required to cure him of the sickness. This means a lot of money. One needs to protect himself or herself against this sort of health and financial disaster. This service is provided by the Health Insurance. Nowadays, people are more interested in which company provides them with better risk coverage. People want to be aware of each and every thing that is going on in the health insurance market. This news is beneficial to not only the health insurance providers but also those who want to avail the health insurance. The health insurance news may be published on paper or be posted on the net as a web page. In this age of the internet, the health insurance news on the net seems to be the thing in demand.

Rising costs of health care: As mentioned earlier the cost of health care is increasing day after day. On the other hand the changing lifestyles, changing diet, and income related stress contribute to the increase in sickness and diseases. Actually, this accounts for nearly 8 percent increase in the consumption for healthcare. On the other hand the overall consumption rate was approximately 4.47 percent. In 2007 the expenditure for health in India was approximately Rs.180, 000crore. The low income group in India is finding it difficult to bear the expenses for healthcare services. The best alternative for both the income groups is financing healthcare services through health care insurance.

The percentage of population that has availed the cover of health insurance stands at about 12. This means that a majority of the Indian population has not availed the health insurance cover. A major part of the market is left unattended. When we look at the present market we come to know that about 70 percent of the health insurance market is dominated by the state owned companies whereas the remaining 30 percent of the market is catered to, by the private companies. Thus, there is a lot of scope in this market.

The Indian government has become liberal and allowed foreign direct investment in the insurance sector too. This is the reason for many of the Indian insurance companies tying up with the foreign insurance companies. The growth of the health insurance sector is going to be boosted by the Foreign Direct Investment (also known as FDI). The modern day health insurance companies are targeting to cover half of the Indian population under the health insurance cover within the next seven years. Presently, the health insurance premium is nearly Rs. 4000 crores and is projected to be approximately Rs.30, 000 crores in 2015. The government has allowed 49 percent foreign direct investment in the insurance sector.

One of the new articles feature the research that has been conducted nation wide in 63,000 households spread in 23 states. This research was conducted by the National Council of Applied Economic Research (NCAER) in association with a private health insurance company. The results of this research were startling enough to reveal that the health insurance had penetrated only 1.2 percent of the market. This research also revealed that just more than half of the population was well planned to bear the health expenses.

The health insurance market seems to be optimistic because the health and micro insurance are projected to grow very rapidly over the next few years. The IRDA has recommended the decrease in the requirement of capital for companies that are only offering health insurance. Now, the capital required for a health insurance company would be just Rs.50 crores instead of Rs.100 crores. The poor are being brought under the cover of health insurance through micro health insurance schemes. The micro health insurance scheme has become necessary because two-thirds of the Indian population live in the rural areas.

With reference to the total insurance premium; India ranks 5th amongst the Asian countries.

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