Indians are not adequately financially protected against any major illnesses. According to Tata AIG Life Insurance Company Ltd (Tata AIG) survey - "Health Matters" Index 2006, about 72 per cent of respondents would not be able to sustain themselves and their dependents financially for more than a year if their main source of income was eliminated due to sickness or accident. This survey is a comprehensive, first-of-its-kind to assess the awareness and the need for accident and health insurance as well as critical illness covers in India.
Speaking about the survey, Bimal Balasingham, director, Tata AIG said, "The "Health Matters" Index survey is an initiative aimed at assessing and understanding the needs and expectations of consumers for insurance products. The survey has provided interesting insights about the perception and orientation of consumers towards life and health insurance. The findings of this survey will aid us in customizing suite and offering innovative insurance solutions to the Indian consumer".
While 65 per cent respondents were inadequately covered to meet the rising healthcare, hospitalisation and surgical expenses. About 67 per cent were extremely concerned about accidents and disabilities adversely affecting their financial stability but 43 per cent of respondents did not feel the need to be covered by health insurance.
This is significantly alarming and indicates a lack of awareness towards the relevance and need for health insurance, in the backdrop of rising healthcare costs and an increasingly stressful life that leads to a higher susceptibility to major illnesses.
Tata AIG Life with the objective of evaluating and understanding the changing market needs for insurance products like accident/health insurance. It would also help create an annual index that would track the progress of this sector and benchmark India against other Asian countries.
The company also revealed that the average age of owning an insurance policy in India is 28 years, which is a positive sign and indicates a growing awareness amongst the youth towards the need and importance of insurance. While 41 per cent of respondents expressed a preference for private medical care post retirement, only 27 per cent expressed a desire for public medical care post retirement.
The company has appointed around 23 thousand agents in all over India. It has also done tie up with many well-known banks namely HSBC, UBI, Citi financial and PNB bank. The company has two products in the pipeline and is expected to be come out in the Indian market soon.
Tata AIG is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Group's pre-eminent leadership position in India and AIG's global presence as the world's leading international insurance and financial services organization.