Wider coverage needed for maternity expenses

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The first and foremost reason why women mostly walk into a hospital is maternity. But surprisingly, a limited number of insurance companies offer maternity insurance in their plans. Most of the insurers classify it as a planned activity and therefore consider it as a pre-existing illness. There is an urgent need for liberalising the insurance regime and not treating pregnancy as a disease. Entry-level for such cover should be made easy with a minimum waiting period and affordable premium rates.

Maternity plans are not something new. A few insurers are already offering it. But the existing plans are generally expensive, given the chances of a claim being filed under the policy are very high. Therefore, when one decides to buy such coverage, it is recommended to understand the fine print keeping the waiting period in mind. These plans come with a waiting period of 9 months to 6 years, which makes them more appealing to the needs of young women or those wanting to start a family. For liberalising the insurance coverage, the waiting period needs to be removed without a steep hike in premium rates.

Another lesser-known fact about maternity insurance is that it is available only with individual female plans and not in individual male plans. With the insurance penetration ratio already tilted against the women, insurers should consider giving the option with both male and female policies.

Given the fact that the pregnancy-related costs are escalating, insurers must become forthcoming in offering the coverage with affordable premium rates. In addition, it should cover the mother and the newborn child who need extra protection during these Covid times. For example, we recently heard of cases where newborn children were diagnosed with the virus or black fungus. In such cases, it becomes necessary to have a maternity cover for the protection of the mother and the newborn.

A more accommodative approach is needed from insurers as the increasing cases of cesarean section have already made maternity expensive. The need is to make the health insurance product customer-friendly for delivering a smooth and financially burden-free maternity experience.