According to experts, close to 5 to 7 lakh people in the country suffer from temporary or permanent disability each year due to the high rates of accidents and crippling diseases and lose their ability to work and earn a livelihood
New Delhi: A staggering number of Indians face financial hardship due to disability, with lakhs suffering temporary or permanent limitations each year and recognising this critical gap in financial security, insurance companies are stepping forward with innovative solutions, officials said on Sunday.
A 2018 report by the Ministry of Road Transport and Highways (MoRTH) revealed that India, despite having only 1 per cent of the world’s vehicles, accounts for 6 per cent of all road crashes.
According to experts, close to 5 to 7 lakh people in the country suffer from temporary or permanent disability each year due to the high rates of accidents and crippling diseases and lose their ability to work and earn a livelihood.
“The onset of disability often brings substantial healthcare expenses, making comprehensive insurance coverage crucial to prevent social and financial decline,” Future Generali India Insurance, Chief Distribution Officer, Ramit Goyal said.
A study titled ‘Measuring the financial impact of disabilities in India’ available on the National Institutes of Health (NIH) website, suggests around one-fifth (20.32 per cent) of the household’s monthly consumption expenditure was spent on out-of-pocket expenses for disability.
More than half (57.1 per cent) of the households were pushed to catastrophic health expenditure due to one of the members being disabled. Almost one-fifth (19.1 per cent) of the households that were above the poverty line before one of the members was treated for disability were pushed below the poverty line.
According to R Garg, Head-Term Insurance, Policybazaar.com, in a country like India where there is no social security coverage like those in developed nations and where 2.2 per cent of the population is disabled, having disability income protection becomes prudent.