<div><strong>C. H. Unnikrishnan</strong></div><div> </div><div>India’s most productive and aspiring young generation with more access to healthcare information hasn’t yet fully understood the importance of medical insurance cover, and almost half of them still buy these products just for saving tax.</div><div> </div><div>A latest survey conducted by the country’s top private health insurer ICICI Lombard among the Indian millennial (the population between the age group of 25 to 35 years and mostly in the best earning bracket) showed that 46 per cent of them purchase health insurance just to avail tax benefits and their awareness about health insurance as a financial protection against medical exigencies is still very low.</div><div> </div><div>The multi-city survey across Mumbai, Delhi, Kolkata, Bangalore, Chandigarh, Lucknow, Hyderabad and Ahmedabad, also revealed that 62 per cent of this young population are covered under a floater plan and 43 per cent of the female respondents are covered under a group medical insurance highlighting the need to create awareness about purchasing health insurance themselves.</div><div> </div><div>The survey has also thrown up some interesting observations on the lifestyle and financials of India’s millennial group. These include the spending pattern of this confident, aspiring and alert generation, who spend almost 69 per cent of their income every month. While 50 per cent of their income is spent on family and household items followed by EMIs (equated monthly instalments) and premiums, they also spend considerably on leisure and entertainment. However, their overall expenditure on health and medical is just 5 per cent of their monthly income, the survey revealed.</div><div> </div><div>It also emerged from the survey that the uninsured young generation saved less and spent more on medical expenses as compared to their insured counterparts. An ICICI Lombard internal claims data on this segment also shows that claims for the said age group are increasing year on year. </div><div> </div><div>The other interesting observations from the survey include that 86 per cent of young people in the target cities believe that they are fit and healthy. The insured are more confident about their health than the uninsured. While, at least 68 per cent of the overall respondents agreed that busy life has an impact on their health, a larger number is conscious of their health despite the propensity to lead an indulgent lifestyle.</div><div> </div><div>The study also showed that 85 per cent of the young earning population take steps to de-stress themselves through conscious efforts like regulated diet, yoga or meditation and fitness sports.</div><div> </div><div>“It is heartening to know from the ICICI Lombard survey that they (the targeted age group) understand the importance of good health. However, the level of health insurance awareness among the average Millennial is significantly low with limited understanding of benefits. It is critical that they are guided in terms of realizing the importance of getting insured when young and healthy,” said Sanjay Datta, chief of claims, underwriting and reinsurance, ICICI Lombard General Insurance.</div><div> </div><div>According to the survey, while most Millennials purchased a policy at the age of 30 years, they believe that it should be bought earlier that is 25 or at least before the age of 30.</div><div> </div><div>The medical insurance industry, which includes government and corporate insurance schemes and individual cover, is currently estimated at Rs 20,000 crore in India. While, the government medical insurance schemes such as ESI and other healthcare programmes are still the significantly large portion of the 25 per cent coverage (percentage of the country’s total population), the market share of private insurance companies is about 5 to 6 per cent. </div><div> </div><div> </div>
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