Blood insurance policy : The ultimate solution for India's perennial blood shortages

There will be some innovative insurance policies that BloodyFast mobile app will launch.

There policies will be marketed by top insurance companies in each country.These insurance companies will be our exclusive franchisee for various countries to promote our novel insurance policies through exclusive use of our BloodyFast app in a particular country.

We prefer an insurance company as our initial investor so we can market insurance policies ourselves at least in India.For other countries, insurance companies can be appointed.

Let us compare the situation of health sector in India with that of the world.

We shall consider health insurance sector later.

Health services in India

The 2020 report (published in 2019) is based on 153 countries. Indian rank: 112 (4 places down from the previous year) Spain. Coming in at number one is Spain. The country has an excellent healthcare system, with high quality care offered in both the public and private sector . If we see study these figures, we can clearly see the huge scope that exists for improvement and availability of health services across length and breadth of the country.

Now let us consider health insurance sector in India

In the fiscal year of 2019, over 472 million people across India were covered under health insurance schemes. Of these, the highest number of people were insured under government-sponsored health insurance schemes, while individual insurance plans had the lowest number of people.

In life insurance business, India, ranked 10th among the 88 countries for which data is published by Swiss Re. India’s share in global life insurance market was 2.61 percent during 2018. However, during 2018, the life insurance premium in India increased by 7.7 percent (inflation adjusted) when global life insurance premium increased by 0.2 percent (inflation adjusted). As of now, there are 31 insurance companies in the country that offer health insurance products. Out of these, 24 are General Insurance Companies offering health insurance plans and 7 are Standalone Health Insurance companies.

Within the insurance schemes, the state owned health schemes are the most subscribed

Now let us consider BLOOD DONATION sector in India and look at the possibility of starting a blood insurance policies for ordinary people so that all malpractices end forever and blood shortages in India become a history.

Scope for general growth of insurance sector and health insurance in particular is huge in India and blood insurance within health insurance schemes.

There are many innovative new insurance policies that can be launched as they simply do not exist anywhere in India and it is high time to consider them on urgent basis. I will talk about others later but right now let us consider only Insurance policies for blood donation.

I have written a separate detailed blog on blood donation complexities in India which you can find it here in our blogs section of website but it is in Marathi language

Blood donation scenario in the world ( For more info visit WHO website)

Key facts

• Of the 118.5 million blood donations collected globally, 40% of these are collected in high-income countries, home to 16% of the world’s population.

• In low-income countries, up to 54 % of blood transfusions are given to children under 5 years of age; whereas in high-income countries, the most frequently transfused patient group is over 60 years of age, accounting for up to 75% of all transfusions.

• Based on samples of 1000 people, the blood donation rate is 31.5 donations in high-income countries, 15.9 donations in upper-middle-income countries, 6.8 donations in lower-middle-income countries and 5.0 donations in low-income countries.

• An increase of 7.8 million blood donations from voluntary unpaid donors has been reported from 2013 to 2018. In total, 79 countries collect over 90% of their blood supply from voluntary unpaid blood donors; however, 56 countries collect more than 50% of their blood supply from family/replacement or paid donors.

• Only 55 of 171 reporting countries produce plasma-derived medicinal products (PDMP) through the fractionation of plasma collected in the reporting country. A total of 90 countries reported that all PDMP are imported, 16 countries reported that no PDMP were used during the reporting period, and 10 countries did not respond to the question.

• In 56 countries, more than 50% of the blood supply is still dependent on family/replacement and paid blood donors (nine high-income countries, 37 middle-income countries and 10 low-income countries).

• 16 countries report collecting paid donations in 2018, around 276 000 donations

Blood donation scene in India

India’s demand for blood is around 13.1 million blood units (1% of 1.3 billion population) These are official NACO figures in March 2018.

The WHO recommends that the blood requirement of 1% of a country's population be used as a ballpark estimate of its blood needs. By this measure, India was short of 1.9 million units of blood, data presented to the Lok Sabha (lower house of parliament) on March 23, 2018)

But India today website gives a different picture

India has the world's largest shortage of blood, with all states together battling a huge shortfall of 41 million blood / component units and demand outstripping supply by over 400%, says the first of its kind study published in The Lancet journal and demand is rising, says the findings with absolutely no sign of going down in future.

Let us consider this figure as authentic

Now let us combine the scene of Insurance and blood donation together

The figures may differ for year 2020 but these are old figures of 2018 are reliable and we can safely base our conclusion on these figures

We shall consider minimum figures for safe conclusions. The actual figures will certainly strengthen our claims for necessity of Blood insurance policies

India’s population is approx.130 crore people.

Shortage of blood is approx. 40 million units for easy calculation

We need to boost voluntary blood donation by just 40 million people so that full blood requirement of whole country is met every year without shortage.Same figure will be just

10 million people if they are regular blood donors who donate blood after every 3 months

Inspiring 40 / 10 million people for a social cause is not a big deal for the population of 130 crore people but still it is not happening despite of all campaigns conducted by government as well as NGOs and social workers everywhere.

What is the main reason for lethargy of people about donating blood?

There is just one factor of DESHBHAKTI in favor of blood donors and many more that keep all blood donors away from this noble cause. This is the right time to at least compensate blood donors when they themselves (rarely) need blood. All blood donors are not rich.

1) Various types of fears in minds of people due to incomplete or wrong info

2) Media articles and stories of exploitation by blood banks and hospitals

3) News about wastage of blood for various proper or improper reasons

4) Harassment / neglect of blood donors when they need blood themselves

The campaigns run by government and NGOs are not successful enough to allay the fears and doubts about “what happens to my donated blood”?

Why should I donate blood when everyone else is making money out of it or it s wasted?

This is not an imaginary fear. It has solid basis of reality check by people.

Now there are 2 ways to handle this situation

1) Raise public awareness about many aspects of blood donation through more creative and effective campaigns to educate people.( Experience shows that this is not working for years for reasons mentioned above )

2) Second alternative is to declare blood as commodity and allow its business. This is completely ruled out as this is illegal but fact is that business of blood is happening without any hindrance or fear of law.

3) ONLY SOLUTION: Blood insurance policies for people.

Let us see how can we achieve self-reliance in blood supply in India

Let is not consider whole population of India which is approx..130 crores.

Let us consider ONLY the people who are aware of the concept of insurance and who have already bought insurance policies of various types. Insured people in India are about 50 crore and there is a huge scope for growth in this vast population of India which are out of this net of insurance.

Now let us consider these 50 crore people only.

Adding 41 million extra units of blood which is a total shortage should not be a big issue at all.We can inspire them by a novel blood insurance policy. This policy should be reasonably priced. Even this small amount may be very high for poor people of India for whom a separate fund can be created out of total insurance policy amounts that we shall collect.

What I propose is a very reasonable amount for those people who are already insured under various policies and are fully aware of concept of insurance.

This novel blood policy can be of 2 types

Blood donors and Non-blood donors

1) Regular voluntary blood donors donating blood regularly ( at least 3 times a year or more )

NO CHARGES BUT THEY ARE STILL INSURED IF THEY NEED BLOOD FOR THEMSELVES

All rules,regulations and definitions for all policies can be discussed - This is just a proposal

Rs 100 per Family members per year

2) Voluntary blood donors: One or 2 times blood donation per year

NO CHARGES BUT THEY ARE STILL INSURED IF THEY NEED BLOOD FOR THEMSELVES

Rs.200 per family members per year

.............................................................................

NON BLOOD DONORS

Rs.300 per person per year

.............................................................................

SHORT TERM POLICIES FOR TRAVELLING / HOLIDAYS / PICNICS ETC

Rs 1000 per FAMILY valid for max.1 month ( What is family can be defined)

OR Rs 300 per person valid for max.1 month )

Blood donors are insured anytime and they need not pay anything for blood needed for themselves. We can NOT charge blood donors under any circumstances.

Boost for number of voluntary blood donors will be a boost for plasma-derived medicinal products ( PDMP ) through the process of fractionation of plasma.These products are exorbitantly expensive in world market and India can get massive foreign exchange by exporting them.There is massive demand for these products in western markets.

a) Amounts for blood insurance policies can be discussed by experts

b) Paperwork to be submitted to avoid frauds can be discussed

c) Any flaws and mistakes in this article can be discussed and corrected

PLEASE REMEMBER THAT WHOLE IDEA OF BLOOD INSURANCE POLICY IS TO

INSPIRE VOLUNTARY BLOOD DONORS TO COME FORWARD.THIS WAY CAN COMPLETELY SOLVE THE PROBLEM OF BLOOD SHORTAGES IN INDIA

Now let us see profitability of this business for insurance companies.

Unless this is a profitable, no insurance company will agree to issue such policies under any circumstances. They need to be viable i.e profitable for insurance companies to get interested in discussing it.

Boosting the blood donors base by 40 million units is not a big deal if these policies are available where people are convinced to donate blood regularly because if they need it, expenses are ensured.

THE BLOOD REQUIREMENTS ARE GROWING EVERY YEAR

1) Road accidents are rising world over

2) Failing health of citizen in all countries

3) Surgeries are increasing everywhere

4) Organs are failing and transplant operations are growing

5) Number of Pregnancies and delivery of babies is huge

6) Natural and man-made calamities are growing

7) Cancer treatments like chemotherapy /surgeries / Bone marrow transplant etc is on rise

Please remember one voluntary regular blood donor can donate blood 4 times in a year so the actual figure of inspired blood donors will be 10 million only and not 40 million.

Let us take minimum figures and just last category for calculations

Our of 50 crore insured people, only 10% people opt for blood insurance policy. That makes it 5 crore people.

We are still not talking about people who will be inspired to donate blood, specially the younger generation who have not donated blood even for the first time. Achieving 5 crore mark should not be a problem if a huge ad campaign on TV and social media is run all over India to announce this new policy and entire population knows about it

What is the profitability?

Insurance company will collect minimum 500 crore rupees per year as insurance policies from all over India for this new blood insurance policy.

How much they need to pay the insurance claims of people who are insured under this new policy when they themselves need blood?

I have asked many blood donors and blood banks about how many blood donors come back to ask for blood for themselves?

You will be surprised to know that not even 0.5 % blood donors go back to ask for blood for themselves. Let us safely consider this figure as very high of 1 % so that there is no dispute about the figure. Insurance companies need not worry about free cover to blood donors.

1% blood donors means 500000 blood donors. Lets us say 1 bag is needed for each ( 1% figure covers additional blood bags in few cases)

This total outgo of funds from insurance companies will be

500000 X 1500 Rs per bag- total Rs 75 crores per year

Total out go for one bag of blood will be Rs 1400 only ( Govt.approved rate for blood banks )

We have also proposed that blood donors should get free blood from blood banks where they donate blood.Business of blood banks depends on donors and blood donors themselves hardly go to ask blood -It should not be a burden on insurance company. Blood banks should be made responsible for giving tested free blood to donors

Actually some banks are doing that as it is not a big burden at all for blood banks

If insurance company collects min Rs 100 from 5 crore insured people, it is incoming revenue of at least Rs 500 crores per year

Setting aside Rs 200 crores insurance outgo for claims, there is clear cut profit of Rs. 225 crores remains with insurance companies who should happily announce such policies. Let us consider worst case scenario.Even if every blood donor asks for more than one bag of blood for himself, which is impossible, still it is a profitable business for an insurance company. There is no question of loosing in this policy. No insurance company will be interested in launching such policy if they can not smell profit in it.

There may be some mistakes in my estimates- we can rectify them.Please send your suggestions to admin@bloodyfast.org

Ajit Suryabhagn Vahadane

Organiser

Association of International motivators

9821656016

Bloodyfast mobile app

…………………………………….

Additional reading

Selling blood and paying donors in India is illegal, but across the country, a vast "red market" proliferates.For full details of red market, please visit the website of BBC https://www.bbc.com/news/business-30273994

Why India is facing a huge blood crisis? Visit following Indiatoday website https://www.indiatoday.in/mail-today/story/why-india-is-facing-a-huge-blood-crisis-1619927-2019-11-18