People with different abilities make up a sizable portion of India’s population. According to the 2011 census, the population is 26.8 million, accounting for more over 2% of the total. For a long time, India’s insurance sector has been underserved. When it comes to the differently abled, the number of insured is considerably smaller.
The insurance business is fast changing and gaining pace as a result of the epidemic, particularly in the health insurance area. Despite this, there are a number of misunderstandings, and there is a pressing need for education on purchasing health insurance policies that cater to the differently abled.
Individual insurance requirements vary, and this is especially true for those with special needs. The Indian insurance industry has a long way to go in terms of providing particular insurance products to meet all of these demands. It does, however, continue to sell insurance policies that guarantee to protect people financially in the case of a medical emergency. Let’s look at the alternatives open to them and the exclusions to be aware of while selecting a health insurance coverage.
Disabilities and their types
Congenital and incidental impairments are the two most common forms. Congenital disability is a condition that is present at birth, whereas accidental impairment comes as a result of an accident. Congenital disabilities include heart problems, neurological defects, and Down syndrome, to name a few.
Accidental disabilities can result in permanent whole or partial impairment. While most insurance plans only cover individuals who are disabled due to an accident, certain health insurance policies are now accessible for those who are born with impairments. Insurers, on the other hand, consider them high-risk individuals, and they may be subject to limits.
Before we look into disability insurance coverage, it’s important to understand the two types of policies available: comprehensive and limited. Comprehensive plans protect the insured completely, whereas restricted plans cover the insured just to the degree of the disability and may include exclusions.
There are two types of exclusions: temporary and permanent. Temporary exclusions may be accompanied by a waiting period after which the disability will be eligible for insurance coverage under the same terms and circumstances as pre-existing illness coverage. A permanent exclusion indicates that the disability will be excluded from coverage indefinitely, and the insured will be limited to filing claims for other medical situations.
Extent of coverage for different disabilities
Let’s start with planning for those who have been born with disability. People with atrial septal defect and ventricular septal defect, for example, are covered by insurers such as Star Health Insurance and Care Health Insurance, but these impairments are permanently excluded. Health insurance is typically unavailable to those with certain impairments, such as Down syndrome. Similar limits may be imposed in mental health situations. Care Health Insurance with a temporary exclusion is available to those with schizophrenia and autism. Aditya Birla Health Insurance, for example, offers complete coverage for patients with bipolar illness, anxiety, dementia, and obsessive compulsive disorder.
Let’s look at how insurance may help those with physical disabilities. People with locomotor impairments can choose from Care Health Insurance and Aditya Birla Health Insurance plans that have a permanent disability exclusion. Polio patients with 40-50 percent disability can choose from Star, Care, Aditya Birla, or Niva Bupa Health Insurance plans.
Tax advantages available
There are tax advantages available. Individuals with disabilities can take advantage of tax benefits under Section 80U of the Income Tax Act of 1961 by purchasing health insurance. There are two types of disability under Section 80U: partial disability and severe disability. Individuals with a handicap of at least 40% are entitled for tax deductions.
It’s never been more necessary to be prepared for unexpected medical situations, especially now that COVID-19 and its variations are still a threat. Make sure you have all of the information you need and that you double-check the details with your insurer before purchasing a policy.