Health insurance and how it works
Summary :
Table of Contents
- Introduction
- A study of health insurance
- Origin
- A brief history of insurance sector in India
- Opening up of the insurance sector
- Purpose of a health insurance
- Health care scenario
- The current scenario of health care
- Types of health insurance
- What is Mediclaim?
- Conditions applicable to the Mediclaim policy
- Health insurance in rural sector
- A global comparison of health insurance
- Case study
- FAQs
- Conclusion
Abstract
insurance is vital to a free enterprise economy. It protects society from the consequences of financial loss from death, accidents, sicknesses, damage to property, and injury caused to others. The person seeking to transfer risk, the insured ( policyholder ), pays a relatively small amount, the premium , to an insurance company, the insurer , which issues an insurance policy in which the insurer agrees to reimburse the insured for any losses covered by the policy. insurance is the process of spreading the risk of economic loss among as many as possible subject to the same kind of risk and is based on the laws of probability (chance of a given outcome happening) and large numbers (enables the laws of probability to work).There are many perils (causes of loss) that society faces, some natural (e.g., earthquakes, hurricanes, tornadoes, flood, drought), some human (e.g., arson, theft, fraud, vandalism, contamination, pollution, terrorism), and some economic(e.g., expropriation, inflation, obsolescence, depressions/recessions). Insurers are able to provide coverage for virtually any predictable loss.
Any risk that can be quantified probably has a type of insurance to protect it. Among the different types of insurance are:
Automobile insurance, Aviation insurance, Casualty insurance, Credit insurance, health insurance, Liability insurance, Total permanent disability insurance, Marine insurance, Pet insurance, Property insurance, Travel insurance.
Whilst it might seem complicated, the basic principles of insurance are straightforward. insurance companies assess the risk of any eventuality and the potential downside associated with it. Then based on past experience and their own expertise insurance companies calculate the premium that a customer needs to pay to provide cover against injury or loss. When the insured event happens, the company pays out the agreed level of claim.
Any risk that can be quantified probably has a type of insurance to protect it. Among the different types of insurance are:
Automobile insurance, Aviation insurance, Casualty insurance, Credit insurance, health insurance, Liability insurance, Total permanent disability insurance, Marine insurance, Pet insurance, Property insurance, Travel insurance.
Whilst it might seem complicated, the basic principles of insurance are straightforward. insurance companies assess the risk of any eventuality and the potential downside associated with it. Then based on past experience and their own expertise insurance companies calculate the premium that a customer needs to pay to provide cover against injury or loss. When the insured event happens, the company pays out the agreed level of claim.
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