PRIVATE HEALTH INSURANCE IN RURAL AREAS: CHALLENGES & OPPORTUNITIES

Literature Reviview: Health Research Policy and Systems (2011) the satisfaction with service provision of health
insurance can be influenced by several factors especially the poor knowledge of health insurance and lack of awareness of contribution by the insured persons. Periodic identification of related influencing factors on client satisfaction could assist in guiding policy and decision making to detect promising pathways to improve any nascent program like health insurance schemes. Improved knowledge and better awareness of the scheme's activities by the enrollees could be augmented through the provision of requisite available information to the insured persons at all times Health Insurance, insurance institute of India, (2011) the rising cost of health care has led to the growth in the need for health insurance more than ever before. The old institutions of joint family and social support no longer exist. Individuals with the willingness and the capacity to buy insurance are more and more becoming dependent on the benefits available and have an actual requirement of cover much beyond typical indemnity type plans. The expanding middle class and highly dynamic insurance industry in the country the health insurance segment is poised to see huge volumes in the near future. Chakravarthi (2006) reported that health insurance schemes are more complex and because of various demand and supply side imperfections there are inherent problems in the health insurance market. He also says that most of the perspective population is unaware of the pros and cons of the different schemes of health insurance. Ratna and Sarkar (2007) reported that rural population treat health as an important aspect and are interested in a health insurance scheme. They reported that High costs of hospitalization and surgery is not posing financial risks for poor households. They also reported that Poor rural people are able to take judicious decisions regarding the composition of a health insurance benefit packages. Naveen and Veerashekhrappa (2009) reported that Micro-insurance is entirely a new financial product for the rural poor in the study villages. All respondents heard about the micro health

insurance for the first time through the SHGs and the NGO staff. They say that large numbers of the SHG members cover their health insurance through micro-health insurance program. They also reported that the accessibility of micro health insurance is more skewed towards the income group of very poor and moderately poor households.

Vinod and Saharan (2007) reported those general publics are slowly becoming aware about the benefits of the health insurance and its importance in todays world. They say that the premium level and index of growth of health insurance business is continuously rising up in India. They also reported that public sector players are declining with their market share in health portfolio whereas the private sector players are on the rise in their contribution level.

Pradip and Parthi (2007) reported that Competition is yet to reach the pricing arena in health insurance. The oligopoly nature of market has turned to restrict the free play of market forces through product differentials. They also reported that health insurance has positioned itself today as one of the throbbing classes of insurance in non-life insurance sector in India. Charkravarti (2006) reported that below poverty line population are not capable of paying health insurance premium and the insurance agents are not properly informed about the policy. He says that general publics take financial help from the neighbors/community to bear the financial burden of medical expenses. He reports that a large section of the rural poor in West Bengal simply avoid health implications due their poverty; as they are unable to bear the cost of treatment.