No Age Bar for Health Insurance in India

• 23 Apr 2024

For Prelims: Insurance Regulatory and Development Authority of India, Health Insurance, World Health Organisation.

For Mains: Key Challenges Faced by Elderly Population in India, Issues Related to India’s Demographics

Source: FE

Why in News?

Recently, the Insurance Regulatory and Development Authority of India (IRDAI) has lifted the age ceiling for buying a medical insurance policy, a move that widens the insurance net and provides huge relief to senior Indians.

• Also, the Indian Institute of Science (IISc) Bengaluru has introduced 'Longevity India,' aimed at studying aging-related health issues and creating interventions for better health among the elderly.

What are the IRDAI’s Recent Directions Related to Health Insurance?

• IRDAI has dissolved the barrier to applying for health insurance in India that allowed only individuals aged 65 and lower to purchase health covers.
  • It has instructed insurers to create specialised products for different demographics such as senior citizens, students, children, and maternity.
• It has also emphasised that insurers should strive to provide coverage for individuals with all types of pre-existing medical conditions, as outlined in the "Specific provisions applicable to health insurance products'' published in the Government of India Gazette.
  • Coverage for individuals with pre-existing medical conditions, such as cancer or heart failure, is now available without refusal.
  • It may increase insurance density and insurance penetration in India.
• Insurers are also required to offer premium payment in installments for policyholder convenience, and travel policies can only be provided by general and health insurers.
  • Furthermore, there is no cap on coverage for AYUSH treatments, including Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy.

What are the Key Challenges Faced by Elderly Population in India?

• Status of Elderly Population in India: Recently, India became the world’s most populous country surpassing China.
  • More importantly, a World Health Organisation (WHO) study has projected that by 2050, the country would be home to over 31 crore people above the age of 60.
• Challenges:
  • Lack of Healthcare Access: Affordability is a major barrier to proper healthcare for the elderly in India.
    • Chronic diseases are common, but limited access to geriatric specialists and specialists trained in managing age-related health issues worsen their condition.
  • Elder Abuse and Neglect: Unfortunately, elder abuse is a growing concern. They are vulnerable to financial exploitation, physical or emotional abuse, and neglect.
    • At least 5% of India’s elderly population (aged 60 years and above) stated they experienced ill-treatment in 2020, according to the Longitudinal Ageing Study in India (LASI).
  • Digital Divide: Many government programs and services are shifting online, leaving some tech-unsavvy elderly citizens struggling to access them.
  • Financial Insecurity: A large portion of the elderly population lives below the poverty line, lacking a pension or savings for their healthcare and daily needs.
  • Social Isolation and Loneliness: The breakdown of joint families and migration of younger generations to cities lead to social isolation for the elderly.
    • This lack of social connection contributes to mental health issues like depression and anxiety.

Way Forward

• Age-Friendly Infrastructure: Developing age-friendly infrastructure and public spaces with features like ramps, handrails, accessible transportation, and senior-friendly housing designs can enhance mobility and independence for the elderly.
• Strengthening Elder Abuse Laws: Implement stricter laws against elder abuse and create accessible reporting mechanisms for victims.
• Silverpreneurship Hubs: Establish co-working spaces specifically designed for seniors with expertise and entrepreneurial spirit who can offer mentorship, business development support to new age startups to help them launch or scale their own businesses.
• Senior Influencer Network: Identifying tech-savvy seniors in social media with strong communication skills and creating a network of "senior influencers."
  • These individuals can promote healthy aging, debunk myths about elderly care, and advocate for policies that benefit their generation on social media platforms.

What is IRDAI?

• IRDAI is a statutory body formed under the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999) for overall supervision and development of the Insurance sector in India.
  • The powers and functions of the Authority are laid down in the IRDA Act, 1999 and Insurance Act, 1938.
• The Insurance Act, 1938 is the principal Act governing the Insurance sector in India. It provides the powers to IRDAI to frame regulations which lay down the regulatory framework for supervision of the entities operating in the Insurance sector.

Note: In India, insurance penetration (premium as %of GDP) which was 2.7% in 2001, steadily increased to 4.2% in 2020 and remained the same in 2021.

• Also, there has been a sharp increase in insurance density (premium to population/ per capita) in India. Whole life insurance density went up from USD 9.1 in 2001-02 to USD 69 in 2021-22

Drishti Mains Question:

Discuss the challenges faced by the elderly population in India and suggest innovative strategies that can be implemented to improve the quality of life and well-being of the elderly in the country.

UPSC Civil Services Examination Previous Year Question (PYQ)

Mains:

Q. Performance of welfare schemes that are implemented for vulnerable sections is not so effective due to the absence of their awareness and active involvement at all stages of the policy process – Discuss. (2019)