Health insurance has become a necessity for the common man, but the financing of these expenses is a major cause of mental agony. In its effort to make available healthcare facilities, the Pratima Institute of Medical Sciences (PMIS), have taken upon themselves to make available the benefits of all hi-tech healthcare services and to reach the wider segments of population. This case study proposes some schemes that can take care of the problems that are preventing Indian health insurance from growing.

Risk is inherent in all walks of life. Although inevitable, the financial consequences of risks can be minimized if one is aware of the risk in the first place. Prudent risk management principles advocate the minimization of the impact of uncontrollable losses. Insurance is one of the most scientific, rational, and practical risk management tool for personal property, life, health and liability risk exposures for an individual, as well as a society, based on the fundamental principles of risk sharing and risk pooling.

Nowadays, with a fascination for western lifestyle and food habits, one crucial area often ignored is the side effects of such so called modern lifestyles. In the whole process, what is visible is that illness and diseases of varied natures, not known to the earlier generations, are surfacing in children as well as across all age groups. As far as an individual is concerned, health risks can become catastrophic if one is not prepared for it financially, although for the society as a whole there is very little risk, unless there is an outbreak of catastrophic events such as epidemics, etc. (Rao, BSR, 2004).

Thus, health insurance has become a necessity for the common man, next to food, shelter and clothing. But for the common man, the financing of these expenses, either catastrophic or sometimes even frequently contracted illnesses, is a major cause of mental agony. The cost of care may sometimes result in the complete erosion of the family savings or may even lead to indebtedness as many studies on causes of rural indebtedness bear testimony.

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