Before we go into describing the incidents that made medical insurance universally popular we would take a closer look at the basic concept of insurance and medical insurance and also how do they work. Insurance is a matter of covering the financial cost of a risk. But medical insurance or health insurance differs a lot in this respect. If you have lost something or went through some kind of damage that cannot be returned by any means, then the risk or the probability of this happening that can happen can be covered financially, so that when such things happen you are compensated with the financial value of that damage or loss. Now, up to what extent this coverage would compensate depends on variety of criteria relating to the vulnerability of the risk, the cost of the risk cover or premium, the time of the continuation of the risk cover or term, etc. This basic definition of insurance is true in respect of any kind of insurance, including life and non-life insurance. But only in respect of addressing the crucial need of the insurance policy holder medical insurance differs a lot which we would discuss briefly before going into the discussion regarding the incidents that made medical insurance universally popular.
Through the coverage amount or claim amount you receive after any terminal happening that is already insured, only serves the purpose of compensating the financial loss partially or fully and do not provide you any helping hand towards limiting or obstructing other losses. In medical insurance through the claim amount you are actually supported to go through the treatment and thus it works like a moving helpful company that helps to obstruct the terminal happening in a manâs life that is death. This is the reason why medical insurance is the only kind of insurance that apart from financial compensation indirectly compensates for the emotional loss as well.
Introduction of National Health Insurance in Germany in 1883
Germany has the worldâs oldest national health insurance system and legislation, the introduction of which by Bismark in the year 1883 is cited as one of the most remarkable incidents that made medical insurance universally popular. This revolutionary step slowly followed by many developed nations present a large majority of nations boasts off a national health insurance to cover their population.
During 1920âs Hospitals in America began to offer medical insurance on pre-paid basis
After medical insurance came into existence it is probably the first step that started to make it hugely popular and now considered as one of the few incidents that made medical insurance universally popular. With hospitals sponsoring medical insurance pre-planned plans, medical insurance started to become hugely popular and several group insurance policies come up in response to that.
Expansion of employer sponsored health insurance plans during Second World War
Among the historical accounts of developments and incidents that made medical insurance universally popular the tight wage control and consequent alluring of labor and workers through the benefits like health insurance, accident cover, etc. contributed hugely to the worldwide expansion and popularity of medical insurance as predominant feature among other employee compensation package.
There had been so many great incidents that made medical insurance universally popular among which we could only present a few important ones.