Prime Minister Narendra Modi has pledged to provide health insurance coverage for everyone aged 70 and beyond under the Ayushman Bharat initiative, as per the BJP's election manifesto.

This is a move that aims to secure the support of the older people, who make up a large section of India's demographics, in addition to improving the country's healthcare system.

The Pradhan Mantri Jan Arogya Yojana (PMJAY), popularly known as the Ayushman Bharat scheme, was unveiled by Prime Minister Modi in 2018 and is regarded as the biggest government-funded healthcare initiative globally.

The Pradhan Mantri Jan Arogya Yojana (PMJAY), popularly known as the Ayushman Bharat scheme, was unveiled by Prime Minister Modi in 2018 and is regarded as the biggest government-funded healthcare initiative globally.

It provides coverage of up to Rs 5 lakh per family year for hospitalization in secondary and tertiary care to over 12 crore vulnerable families, which make up the poorest 40% of the Indian population. All pre-existing conditions are covered from day one under the policy, which also pays for tests and medications for up to three days before to hospitalization and fifteen days following hospitalization.

An Advantage for Elders

Should this new manifesto promise come to be, it will broaden the program's scope and offer vital healthcare services to the nation's senior citizens. "The primary worry of the elderly is how they will pay for medical care," said Prime Minister Modi. For the middle class, this is an even more serious worry. The BJP has now adopted the "sankalp" that all people over 70 will be covered by the Ayushman Bharat Yojana, according to Modi.

Over the previous few years, there has been a noticeable increase in health insurance claims across all age categories of 10–30%, with the rise occurring after COVID-19. Due of their frequently expensive premiums and irregular income, senior persons have been disproportionately impacted.

Seniors typically have higher premiums since they are more likely to have pre-existing diseases or disorders. This raises the cost of health insurance premiums for senior citizens and may discourage certain insurers from providing them with policies, especially when combined with the natural aging process.

The Insurance Regulatory and Development Authority of India (IRDAI) released its most recent annual report, which shows that net incurred claims under the health insurance industry amounted Rs 64,631 crore in 2022-2023; a 2 percent rise from the year before. For the health sector, the Net Incurred Claims Ratio dropped from 109% in 2021-2022 to 89% in 2022–2023.

Ayushman Bharat scheme coverage will help senior citizens with their medical bills, which is a major concern for many people in this age group. Affordable insurance for small traders and MSMEs The BJP manifesto also highlights a commitment to introduce affordable insurance products to protect small traders and MSMEs from potential disruptions caused by accidents like fire, theft, and natural disasters, providing them with a safety net that has been absent previously. "Climate change is a growing concern across the globe, and India is no different; between 2001 - 2021, we witnessed more than 350 natural catastrophes (NAT C”).

At more than 90%, the protection gap between insured damage and economic loss is startlingly large. There has never been a greater need for a national parametric insurance programme.

To make nationwide parametric insurance a reality, regulators, state and federal governments, and insurers (both public and private) must band together and collaborate closely. According to Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance Company, "the product will go a long way in bridging the protection gap and helping Indian citizens rebuild their lives much more swiftly after a NAT CAT event," Business Today was informed.

The insurance industry in India has to start concentrating more on MSMEs and small traders. These companies, which are essential to the country's economy, are frequently exposed to unforeseen hardships.

Cost-effective products will enable these businesses to resume operations and recover more quickly in the face of such uncertainties.