Health Insurance :
A systematic plan for financing medical expenses is an important and integral part of a risk management plan. With rising health care costs, it was no longer possible for an individual to meet the heavy cost of treatment involving hospitalization.
The reasons for rise in health care costs are:
(a) Increase in medical treatment costs.
(b) Technological advancements in medical equipment.
(c) High labour costs.
“Health insurance is an insurance, which covers the financial loss arising out of poor health condition or due to permanent disability, which results in loss of income.”
A health insurance policy is a contract between an insurer and an individual or group, in which the insurer agrees to provide specified health insurance at an agreed upon price (premium). It usually provides either direct payment or reimbursement for expenses associated with illness and injuries. The cost and range of protection provided by health insurance depends on the insurance provider and the policy purchased.