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How Urban vs Rural Healthcare Gaps Reflect in Premiums
Health

How Urban vs. Rural Healthcare Gaps Reflect in Premiums

India’s 65% of the population lives in rural areas. But 75% of the healthcare infrastructure is concentrated in the main cities and urban areas, making access difficult for the majority of the population in rural areas. This disparity in healthcare affects every aspect, from doctor availability to insurance penetration. Let’s take two different scenarios to understand the impact of healthcare disparity in rural and urban India. 40-year-old Ashok in a remote village in Uttar Pradesh had to travel 40 km on a borrowed bike to get his ailing father admitted for treatment at a district hospital nearest to his village. When he arrived after a long two-hour travel, the district hospital was short of equipment and specialist doctors. Two main things to notice here are – delayed treatment, lack of quality and too much out-of-pocket expenses. Now, let us imagine a contrast scenario of a family in Mumbai that has quick access to a hospital, doctors and multispeciality hospitals all at a distance of a few kilometres. These differences make a huge impact on the health insurance premiums. Let’s explore how this healthcare gap shapes health insurance risk assessment and impacts the insurance premium.