Insurance Coverage in India and U.S – A Comparative Study. Image Courtesy – https://www.autoinsurance.org.
It does not matter which part of the world you live in, accidents as well as death will occur. Isn’t it? This is what makes insurance all the more important. Insurance coverage in one country is different from the other. Here is a brief comparison between the health insurance coverage in India and USA Interested? Keep reading.
Optional/Mandatory:
In India, it is optional for people to get themselves as well as their families covered under health insurance. Also, it is not mandatory for employers to get their employees insured.
On the other hand, in the USA, every citizen needs to have a health insurance plan. Also, in case of employees, employers must make sure that each of them is covered under health insurance, while they are serving their company.
Premium Rates:
Compared to the premium rates of health insurance in the USA, in India, the rates are much lower. The main reason behind this is the fact that as the people in India are not that aware of the health insurance sector, higher premium rates would further prevent them from getting themselves covered under the voluntary insurance model that is followed here.
On the contrary, premium rates of health insurance are higher in the USA. Want to know why? Well, this is because, here the standard of living is high and more people are insured.
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Health Benefits of Employees:
In India, employers are not bound to provide health insurance to their employees. It depends completely on the employee whether s/he wants health insurance. In that case, they have to purchase the policy on their own or join a company that offers health insurance to their employees.
However, in the USA, is it mandatory for the employers to provide health insurance to their employees. Do you know what the best part is? The employees will get their health insurance cover by the employer not only during their period of service to that particular company, but also after their resignation until they find another job. Isn’t it great?
Health Cover:
In India, the health insurance cover includes hospitalization as well as 30 to 60 days pre and post hospitalization visits to the doctor.
On the contrary, in the USA, the health insurance cover includes each and every visit to the doctor. For example, if you have an eye infection and visit a doctor, it will be covered under the health insurance.
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State-wise Differentiation:
In terms of health insurance policies, there is state-wise differentiation in the USA. This means that each state has its own set of health insurance policies, which are custom made according to that particular state.
But, as you know that India is not a federation like the USA, here every state of the country has the same set of health insurance policies. This means that there is no state-wise tailor-made set of policies or differentiation.
In conclusion, it can be said that the insurance sector in developed countries is much more pervasive compared to the insurance sector in India. The developed countries have finer underwriting practices and better availability of data. This is what makes their premium rates lower in comparison to India. However, according to experts in the insurance industry, the insurance sector in India is all set to be improved and in the next four to five years, there is going to be a positive change in the underwriting practices. Now, that’s a good news!
