This article highlights the need for health insurance schemes in rural India especially in the context of increasing health expenditure burden over the poor and lack of public healthcare spending. The need for community-based health insurance scheme is analyzed with a case study of Chaitanya-HDFC Chub Insurance scheme successfully implemented in Maharashtra.

Developing countries account for 84% of the world's population, and 93% of the worldwide burden of disease. These figures starkly contrast the fact that these very nations account for only 18% of global income, and a meager 11% of global health spending. Furthermore, of the 1.4 trillion Disability-Adjusted Life Years (DALYs) lost annually around the world, the developing world accounts for an overwhelming 93% of this burden, while industrialized nations represent a mere 7% of lost years [Schieber, G and Maeda A: 1999]. DALYs are a measure by which international development agencies quantify the burden of disease. In layman's terms, DALYs account for the years of life lost due to the effects of disease. DALYs are calculated using a two-thirds mortality and one-third morbidity ratio.

In the developing world, South Asia, which is predominantly represented by India, ranks amongst the lowest in health spending: It is a central problem that hinders India's ability to advance its society. Table 1 illustrates South Asia's global position in health spending.

Insurance Chronicle Magazine, Health Security, Health Insurance System, Health Insurance Schemes, International Development Agencies, Gross Domestic Product, GDP, Healthcare Funds, Rural Health System, Primary Health Centers, Rural Public Health Sectors, Risk-pooling, Non-Governmental Organizations, NGOs, Community-Based Organizations, CBOs, Financial Risks, Public-Private Partnership, Developmental Schemes.