About Careers MedBlog Contact us

Health Insurance - Basics

Written by Hannah Punitha, PG | Medically Reviewed by Dr. Sunil Shroff, MBBS, MS, FRCS (UK), D. Urol (Lond) on Nov 11, 2016
Font : A-A+

What is health insurance & Its Policy?

'Happiness lies, first of all, in health.' - George William Curtis

Health insurance guarantees payments to a person in the event of sickness or injury and works as protection scheme.


Health insurance is protection, scheme to take care of health of a person and works it works by buying a policy from a company or an insurance agent. Depending on the premium paid the health insurance policy will pay specified amounts for the medical expenses incurred to overcome the health problem.

Currently the trend of some of the reputable companies seems to be to build in a health insurance policy as a benefit to an employee. Some countries offers free health insurance to their citizen. In India certain sectors like railways, army and the employees working with the central government are covered in a health scheme provided cover to almost 20 million people in different part of the country.

Health like education should be essential and should be freely available to all the citizens of a country. Some developed countries realizing the importance of the health of the nation spend as much as 6% to 8% of their GDP on it and have advanced facilities in their government run hospitals. Some examples include the United Kingdom where the National Health Services hospitals provide all the health requirements to majority of their citizens. Sweden and Norway follow similar government run health schemes.

As per the census of USA in the year 2004, it was noted that 245.3 million people had health insurance coverage; however 45.8 million lived without an insurance cover. In response to some of these stats Senator John Kerry said.

"Great physicians and nurses, skilled, caring and unparalleled in their training, intervened in my life and probably saved it. I was lucky but other Americans are not. It is time to speak again and stand again for the ideal that in the richest nation ever on this planet, it is wrong for 41 million Americans, most of them in working families, to worry at night and wake up in the morning without the basic protection of health insurance."


Developing countries like India have priority of spending in other sectors like the army and the infrastructure development and barely 2% of the GDP is spent on the health and results in the government hospitals lack in facilities especially for any advanced procedures such as heart surgery or hip replacement.

Health insurance schemes are particularly important for individuals from the lower income group to provide them and their family members with adequate cover in event of any mishap or illness. The escalating medical costs are due to the advanced diagnostic and therapeutic procedures that have become the hallmark of modern medical care. An insurance scheme will guarantee that no compromises are made in your treatment for wants of funds.

Remember when negotiating a policy you ask for adequate cover as the provided by the health insurance will depend on the type of policy purchased.

'Our health always seems much more valuable after we lose it' - Unknown Author

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Hannah Punitha. (2016, November 11). Health Insurance Basics. Medindia. Retrieved on Dec 02, 2022 from https://www.medindia.net/patients/insurance/health-insurance-basics.htm.

  • MLA

    Hannah Punitha. "Health Insurance Basics". Medindia. Dec 02, 2022. <https://www.medindia.net/patients/insurance/health-insurance-basics.htm>.

  • Chicago

    Hannah Punitha. "Health Insurance Basics". Medindia. https://www.medindia.net/patients/insurance/health-insurance-basics.htm. (accessed Dec 02, 2022).

  • Harvard

    Hannah Punitha. 2021. Health Insurance Basics. Medindia, viewed Dec 02, 2022, https://www.medindia.net/patients/insurance/health-insurance-basics.htm.

Post a Comment

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.



I think, you missed Apollo Munich Health Insurance.


It has good amount of information for peoples who are looking to buy health insurance. we need to add more websites like HDFC ERGO General Insurance and their comparison also so that it may define why is it best. It may include their insurance plans, coverage and claim process which is necessary to know before buying any insurance.


Hi. Very informative article. You covered all the main points of health insurance policy from which people are unaware of.


which company is good lond life services and benifites full coverges ?


i want to know which is the best health insurance company offering maximum coverage [cashless only] at emergency because of so many health insurance companies.

Vinod Dutt

View More Comments
Recommended Reading
Health Topics A - Z

    What's New on Medindia
    Diet and Oral Health: The Sugary Connection May Become Sour
    World AIDS Day 2022 - Equalize!
    Test Your Knowledge on Sugar Intake and Oral Health
    View all

    Medindia Newsletters Subscribe to our Free Newsletters!
    Terms & Conditions and Privacy Policy.

    Most Popular on Medindia

    Color Blindness Calculator Pregnancy Confirmation Calculator Drug - Food Interactions Blood Donation - Recipients Blood - Sugar Chart Accident and Trauma Care Find a Hospital Noscaphene (Noscapine) The Essence of Yoga Post-Nasal Drip
    This site uses cookies to deliver our services.By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use  Ok, Got it. Close