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Tailor-made for the low-income sector, micro health insurance is defined as an insurance product that specifically caters to the economically weak section of the populace. With the rising healthcare costs in the country, shouldering such burdens can prove to be quite arduous for people hailing from economically vulnerable sections. At the same time, while some of them might be aware of the benefits of a health insurance cover, they may simply lack the funds needed to purchase one. Micro health insurance policies provide them with such healthcare coverage at a nominal and affordable cost. 


Micro health insurance schemes in India target the rural sector which has a significant proportion of low-income households to ensure their access to better care facilities and affordable healthcare options. 

Features of Micro Health Insurance

  • Policyholders are entitled to a limited sum insured that usually ranges from ₹1 Lakh to ₹5 Lakhs. 

  • The premium payments for such plans are low, as the objective is to provide quality healthcare at an affordable rate. 

  • Individuals up to the age of 65 years can apply for such plans. 

  • Most micro health insurance plans in India come with a 1-year tenure but are subject to lifelong renewals.

  • Given the nominal sum insured amount, applicants don’t need to go through medical screenings and checkups before purchasing such plans. 

  • All members of the household can be covered under the plan if it is taken on a family floater basis. 

Benefits of Micro Health Plan

  • Micro health insurance plans cover both pre and post-hospitalisation expenses, reducing the financial burden on the policyholder. 

  • Unlike regular health insurance plans, a micro health insurance plan does not require the policyholder to submit certain documents for payment disbursals. This makes the process of releasing funds hassle-free and easy. 

  • The cost of day-care procedures and treatments that require less than 24 hours of hospitalisation are also covered by a micro health insurance plan in India. 

  • Micro health insurance schemes in India have a vast web of network hospitals and the policyholder can opt for the cashless treatment facility at such network hospitals. 

  • Ambulance costs are also covered by such plans.

Importance of Micro Health Insurance Policies in India

The healthcare disparity that exists between rural and urban India is a stark, yet undeniable reality we have to face every day. While the rural healthcare infrastructure remains underdeveloped, people from these areas have to travel to urban and semi-urban regions to get proper treatment. Shouldering these expenses proves to be a significant drain on these already economically marginalised people. 


Micro health insurance products in India help mitigate this financial burden and ensure access to better healthcare facilities. Since more than 65% of the Indian population is rural and continues to depend on low-income livelihoods, like farming or small businesses, they are incapable of bearing the burgeoning costs of healthcare services. Additionally, the lack of awareness about preventable diseases also increases their risk for such ailments. People from this economically marginalised section cannot purchase regular health plans, given the exorbitant premium rates. This is where micro insurance policies in India make a difference. They make quality healthcare affordable for this section of people, minimising the financial risks and uncertainties associated with a medical emergency. 

Other Types of Plans for Micro Insurance

Micro health insurance plans fall under the category of general micro insurance policies that cover the health and property of the insured. However, there are a few other types of micro insurance products that low-income groups can opt for. Here’s a list of the few common types of micro insurance plans: 

1. Term micro insurance

Available as both group and individual plans, such policies provide a life cover with death benefits to the insured individual. 

2. Endowment micro insurance

These plans offer survival and death benefits to the policyholder, with the option of adding a pension allowance clause to the policy.

3. Property micro insurance

These policies cover the assets of the policyholder against theft and damage. Natural calamity-induced property damage is also covered under such plans. 

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What is the sum insured under a micro health insurance plan in India?

The sum insured amount for such schemes varies from ₹1 Lakh to ₹5 Lakhs.

What is the benefit of a micro health insurance plan?

A micro health insurance plan helps rural low-income households shoulder the financial burden of dealing with medical emergencies. With such plans, the economically vulnerable sections can access quality healthcare at affordable rates.

Will a micro health insurance plan cover my hospitalisation expenses?

Yes. A micro health insurance plan covers expenses for both daycare procedures and hospitalisations exceeding the 24-hour window. 

What are the inclusions and exclusions in a micro health insurance policy?

The inclusions and exclusions in the micro health insurance policy will depend on the policy you pick. The coverage scope of the plan, along with its specific inclusions and exclusions will be delineated in the policy document. 

How much premium will I have to pay for a micro health insurance plan?

The premium for your policy will depend on your insurer and the coverage umbrella of your plan. However, rest assured that all micro insurance plans have low and affordable premiums.

What is the difference between a general micro insurance plan and a life micro insurance plan?

The former covers the health and property of the insured, while the latter offers a life cover, along with death benefits for the policyholder. Micro health insurance is a type of general micro insurance, while endowment or term micro insurance plans can be cited as instances of life micro insurance policies.

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