Prime Minister Narendra Modi may announce on this Independence Day a universal health insurance plan as part of the commitment by the government towards the welfare of the people of India, most probably without any subsidy, which will cover all members of a family under a single sum insured. We are still working on the proposed scheme and fine-tuning the premium. The new scheme may be announced by the PM this weekend (at the I-Day speech)," a top official of a state-owned general insurance company said.

Health benefit is a huge burden for all, especially senior citizens. Government’s initiative in this arena to provide health insurance to all is a real commitment. Senior citizens will be the real beneficiary, if  once the scheme is introduced as now they have to pay a huge premium to get a health cover. This will be a great step by any government of India to ensure the health of the people of this country. This will definitely credit the government with enough of goodwill.

The scheme will offer a cover of Rs 50,000 for a family of five on a floater basis and in those cases where the oldest beneficiary is under 60, then the sum insured will be Rs 1,00,000, says the proposed draft.

The proposed scheme will be made available to all families not exceeding five members, including those families headed by senior citizens and the entire family will be covered under a single sum insured. The upper age limit for availing of the benefit is 60 years.

The policy covers cashless hospitalization for diseases contracted or injury sustained by the insured persons. Preexisting diseases will be included after a waiting period of 24 months.

United India Insurance chairman and managing director Milind Kharat said that, "the scheme will help senior citizens the most, as now they have to pay a huge premium to get a health cover". "We hope that it will be lapped up by the masses and the resultant increase in volume will help us insurers to provide wider cover at a comparatively low premium. However, if no subsidy is offered to the poor, it will be difficult for them to afford," he added.

Apart from the four state-run non-life insurers, ICICI Lombard, Bajaj Allianz, Iffco-Tokio Marine and HDFC Ergo are also working with the government on the proposed scheme.

By Premji