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What is the Importance of Micro Health Insurance?

Updated On Apr 26, 2021

Micro health insurance is designed in particular for our country's rural sector. By farming or doing small business, they earn their living. The worst thing is such a family is more vulnerable to sickness, as such they find it tough to manage the illness if there is a medical emergency because they are unable to afford medical treatment and affordable healthcare. It is considered mandatory to provide healthcare for families in recent times when the world is rampaging its way through a pandemic such as the COVID-19.

Features of Micro Health Insurance

Low-income households and micro, small and medium-sized businesses are especially susceptible to risk, whether connected to health, property, agriculture, or death. When people, businesses, and families continue to deal with them, these threats also bear significant financial consequences. Some of the features of micro health insurance are

1. As it is micro health insurance, the amount covered offered under this form of plan is limited. It normally varies between Rs 1 lakh to Rs 5 lakhs.

2. The premiums are low enabling the rural population to effortlessly afford it

3. The policy coverage is usually given for one year

4. A family floater policy can be taken including all members of the family.

5. The very basis on which micro health insurance firms operate is to create certain forms of insurance.

6. Although the coverage number is limited, pre-entrance health check-ups are not necessary for buying the plan.

7. There is an age limit of up to 65 years.

8. It comes with lifetime renewability.

Benefits of Micro Health Insurance

The most significant loss to the rural population has been caused by the current pandemic as several people have lost their income source and are now falling victims to the outbreak. In these tough times, getting access to micro health insurance helps them to take advantage of necessary medical treatments without stretching their budgets. Some of the benefits of micro health insurance are

1. The micro health insurance also includes a provision for pre-hospitalisation expenses coverage.

2. Usually, when buying insurance, there is a documentation procedure for claiming it. However, micro health insurance guarantees that the additional hassle of such a cumbersome procedure is not needed and makes it easier to release post-hospitalisation funds.

3. There is also a provision for daycare treatments in micro health insurance plans.

4. There are a few groups of people who are not even able to pay the ambulance costs. The insurance schemes, therefore, ensure that the ambulance cost through the scheme is covered.

5. The bulk of India's micro health insurance plans have extremely good hospital and clinic networks to support the insurer anytime during an emergency.


With a large part of the country being a rural population, it is important to have adequate micro health insurance policies. For the rural population, there are presently a few insurance companies providing micro health insurance policies. These micro health insurance policies provide the rural community with a good coverage scope at relatively low premium rates. These policies allow people in rural areas to access affordable healthcare and take advantage of the medical services they need without straining their finances.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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