Organ donation now part of larger health policies

With organ transplants gaining popularity, insurers are now offering to cover expenses

Organ donors now have a variety of covers to choose from, since insurance companies have been offering this as part of the larger health insurance product.

While these covers were earlier offered as an add-on or a small portion of the cover, insurers are now offering this cover as part of the comprehensive health insurance that a person takes.

This is a financial burden on the donee (person who receives the organ) because he has to incur the donor's expenses in addition to his own.

It is helpful if the donee has an insurance policy and his insurer is ready to cover the organ transplant treatment. However, the donor's medical cost will still have to be borne by the donee. A donor's medical expenses can be up to 20 to 40% of the treatment, depending on complexity and type of hospital.

K G Krishnamoorthy Rao, MD & CEO of Future Generali India Insurance explained that almost all insurers cover organ donation expenses in the health policy, especially since organ transplants are gaining popularity in the country.

The number of transplants in India is around 15,000-20,000 every year. According to media reports, about 200,000 people need a new kidney and about 100,000 need a new liver every year. However, a very small% of the demand is met. The number of donors are few and the high cost of treatment is a barrier.

Health insurance experts are of the view that it is advisable to buy a policy that will cover the medical expenses of both donor and donee.

Hospitals also prefer organ donors who have an insurance cover against unexpected medical expenses so that the liability can be shared. While this is not mandated, hospital authorities say that since such covers are available, it should be easier to be insured than before.

With the insurance regulator mandating that general insurers cover atleast 12 critical illnesses, organ donor expenses is also included under its ambit by companies.

Industry sources said that earlier there were several cases of organ donors being rejected a cover by the general insurance companies due to the risks involved. “Now, with the advancement of technology, both public and private companies are now averse to providing a cover. But, the individual has to disclose this at the very beginning to avoid rejection of claims in the future,” said the chief executive of a mid-size private general insurance firm.

Even new products coming into the market have such features. For instance, Liberty Videocon General Insurance which recently entered the retail health space with the launch of its product covers organ donation expenses up to the sum assured.

Roopam Asthana, Director & Chief Executive Officer of Liberty Videocon General Insurance had explained that their ‘Health Connect’ policy covers expenses incurred towards organ donor’s screening & treatment for harvesting of the organ donated.