CHENNAI: India, home to one of the world’s largest youth population, will be housing 19 crore people aged over 60 years by 2030, according to a UNFPA report. In other words, the nation should soon brace itself to accommodate the ageing population and prepare to deal with the economic consequences that might arise from it. As a result, measures like increasing the retirement age, compulsory contributory pension schemes and insurance cover, specifically insurance that covers the rising costs of home care should be undertaken at war-footing says ‘Americai’ V. Narayanan CPA, an IRDA certified insurance broker and chairman of EasyInsuranceIndia.com.
“When we talk about home care, it does not limit to the elderly alone. There are several people who often suffer from infirmities and are bedridden without a condition that requires hospitalization. It also comprises of homecare for the physically challenged in need of daily assistance, those recovering from surgery, chronic diseases, etc. These people do not need trained medical professionals like nurses or doctors on an everyday basis to look after them but need attendants – who assist them with day to day tasks that they cannot perform by themselves.”, explains Kavya Narayanan, a commerce graduate.
Other than drastically cutting down the insurance cost, homecare comes with a lot of advantages. Since in most households women drop out of work to care of the elderly at home, homecare insurance might help them get back to work. “ With India now turning into a hub for medical tourism, an industry can be built around homecare. It has the potential to create employment to tonnes of people, as one doesn’t necessarily have studied nursing or related courses to assist patients. It is a win-win situation for all”, says Narayanan.
Despite the several benefits it offers, the majority of health insurers still do not cover home care. “In India, many patients have to get admitted to hospitals for procedures that can be carried in an out-patient ward because health insurers do not cover the treatment otherwise. The few insurance companies that do cover them, do so only if the condition of the patient is such that he cannot be moved to the hospital. This is called domiciliary treatment– and even this is a rarity. Only a small percentage of the sum insured is covered when the treatment is domiciliary (Around 10%),” explains Kavya.
In their defence, health insurers argue that insuring homecare involves numerous moral hazards, as it is difficult to ascertain if the person’s home care needs are legitimate or not. Addressing this, Kavya says “Uncertainties, verification costs and potential hazards can be built into the actuarial formula to come up with a suitable premium amount to be paid for these insurance products”.
“A clear statement from the insurance companies on the services they might cover will also encourage attendant services to come under formal purview”, she adds. “ Homecare insurance should be included in the National Health Policy”, says Narayanan seconding her opinion.
