 "Why health insurance and healthcare need focus in the budget. Reuters")
The upcoming Union Budget 2025 demands significant attention to how technology has revolutionised India’s healthcare industry. Technological improvements created both beneficial openings and general security risks, coupled with higher incidents of healthcare worker violence and increasing economic hazards. A strong insurance solution becomes increasingly necessary to protect healthcare providers because upcoming budget measures require a focus on evolving risks in healthcare. Insurance arrangements with strong frameworks will maintain healthcare practitioners’ security and stability to prevent financial losses affecting their medical delivery and quality.
Healthcare needs a comprehensive protection that actually works
Medical practitioners now require enhanced financial and legal protection as healthcare risks continue to evolve. Tailored insurance solutions become necessary for doctors because of increasing incidents of violence against healthcare professionals along with mounting cyber threats to patient data and the potential for legal exposure. Improved financial awareness and literacy among healthcare providers enable them to protect their practices and deliver smooth patient care through informed choices.
Healthcare professionals rely on insurance to shield themselves from growing security threats because it provides coverage that prevents their financial collapse and legal problems. Healthcare providers who receive improved financial education about insurance benefits will enhance their ability to protect both their practice operations and patient well-being.
Key areas where comprehensive insurance can provide support:
Protection Against Workplace Violence: A study by the Indian Medical Association revealed that approximately 75 per cent of doctors in India have experienced some form of workplace violence, predominantly verbal abuse. Comprehensive liability coverage can help mitigate financial risks arising from such incidents.
Cybersecurity and Data Protection: The Indian healthcare sector currently endures an unprecedented surge of cyber threats through 8,614 weekly attacks that exceed the global average by approximately double. Healthcare providers hold sensitive patient data which makes them particularly vulnerable to ransomware attacks along with data breaches and AI-backed cyber threats that threaten both medical safety and patient trust.
The May 2024 security breach demonstrated how dangerous these threats can be since it exposed 500GB of biometric information while exposing serious safety concerns. Modern cybercriminals target personal devices coupled with deepfake techniques and data integrity breaches so cybersecurity demands transformation into a strategic priority.
Complete cyber insurance coverage requires more than data defence since it must handle risk reduction measures alongside swift incident response protocols and legal resource capabilities to maintain medical service operations and support healthcare infrastructure protection.
Professional Indemnity Coverage: The Indian Medical Association conducted a study indicating workplace violence in the form of verbal abuse targeted 75 per cent of doctors across India. A thorough liability policy helps organisations reduce their financial exposure from such workplace events.
Enhancing Financial Literacy: Most healthcare providers demonstrate an insufficient understanding of financial planning and risk management approaches. Instruction in financial awareness enables people to select insurance solutions more effectively.
Expectations from Union Budget 2025
Given the challenges healthcare professionals face, the Union Budget 2025 presents a unique opportunity to address these concerns. The upcoming budget must prioritise measures to enhance healthcare insurance accessibility and promote financial literacy among medical practitioners.
Tax Incentives for Healthcare Insurance: The provision of tax benefits for insurance premiums directed to healthcare professionals will boost the adoption of total insurance coverage. Tax benefits for medical practitioners would minimise their insurance costs and motivate them to purchase coverage that safeguards their personal lives and professional success.
Government Support for Healthcare Workers: The budget must allocate funds for insurance subsidies to assist healthcare workers employed in public medical institutions and smaller clinics, which typically have restricted financial capacities. Low-cost insurance benefits provided by the government protect medical practitioners working across the nation from occupational dangers.
Vision for 2025
The healthcare sector needs full insurance solutions to maintain both provider security and overall industry stability in these increasingly intricate work environments. Through its protective function, insurance enables healthcare providers to concentrate on delivering patient care by handling their specific operational risks, including workplace violence, cyber threats, and legal obligations. The upcoming Union Budget 2025 presents a prime chance for the government to establish direct support measures for healthcare staff together with expanded insurance benefits and financial education initiatives. Collaboration between the government insurers and healthcare providers will develop an advanced and safe healthcare system, which will boost India’s healthcare industry’s future growth.
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More ShortsThe author is Co-Founder & CEO, CoverYou. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.