Why health insurance is so under utilised in India

Despite the many benefits of health insurance, it is underutilized in India, with a relatively low percentage of the population insured. There are several factors that may contribute to the low utilization of health insurance in India:

1. Lack of awareness: Many individuals in India may be unaware of the benefits of health insurance or may not understand how it works. This can lead to a lack of interest in purchasing insurance.
2. Affordability: Health insurance can be expensive, particularly for low-income individuals or families. This can make it difficult for some people to afford insurance coverage.
3. Complexity: Health insurance policies can be complex, with a range of terms and conditions that can be difficult for some individuals to understand. This can make it challenging for people to choose the right policy.
4. Limited access: Health insurance may not be widely available in some parts of India, particularly in rural areas. This can make it difficult for some individuals to access insurance coverage.

Overall, there are several factors that may contribute to the low utilization of health insurance in India, including a lack of awareness, affordability, complexity, and limited access. Improving awareness and access to health insurance and simplifying policies could help to increase the utilization of health insurance in India.