The Tamil Nadu government had launched a health insurance scheme for those living below the poverty line in July 2009. It was named the Kalaignar Insurance Scheme and covers a four member family for a period of 4 years. The scheme takes care of expenses incurred on account of life saving treatment.
Speaking to the media, the chairman of IRDA, Mr J Hari Narayan has expressed concerns on the viability of such schemes with such low premiums. The scheme is called Kalaignar Kapitu Thittam and provides a one lakh health insurance cover to a family of four. Only those having income less than Rs. 72,000 per annum are eligible and the Tamil Nadu Government pays the premium for these insurance schemes.
This plan is similar to the one launched in Andhra Pradesh 2 years ago – Aarogyasri which covered 150 diseases at Rs. 80 per person per year when launched. It now covers 800 treatments at Rs. 76 per person per year. Both the above mentioned plans have been launched by Star Health Insurance Company.
Mr Harinarayan feels that such unbelievably low premiums may not always work. In the current pricing system, the insurance scheme will work if only 1 in 500 people need operations. So if 2 people need operations, the scheme will collapse and will become un-viable. He feels these schemes may not be scalable to a larger population.
He also went on to add that he had no solutions and was just highlighting his concerns.
