ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The policyholder pays a certain amount called ‘premium’ to the insurance company against which the latter provides insurance cover. The insurer assures that it shall cover the policyholder’s losses subject to certain terms and conditions. Premium payment decides the assured sum for insurance coverage or ‘policy limit’.

Detailed explanation-2: -Health insurance is a type of insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalisation costs, cost of medicines or doctor consultation fees.

Detailed explanation-3: -Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among many individuals.

Detailed explanation-4: -Government sponsored health insurance schemes are many in India and includes Employee’s State Insurance Scheme (ESIS), Central Government Health Scheme (CGHS), and the poor people’s health insurance programs such as RSBY and other state health insurance programs.