Health Care Insurance in India: The New Paradigm

This paper is an exploratory study. It covers, first importance of health insurance, secondly impediments of health insurance in India, thirdly potential implications of economic crisis on health and health insurance in India, and lastly triangular model for universal health insurance in India. As Kenneth Arrow, Noble Winning Economist, stated that the health insurance directly improves the entrepreneurship and indirectly develops the economy as a whole, it is found that health insurance will have similar positive impact in India. It is also found that health insurance works as a put option derivative in the hands of individual during the time of recession. Put option is a contract in which the seller of put option i.e. health insurance policy, has got an obligation to pay for medical expenses of buyer of put option i.e. insured.