Question

The department of car service is concerned about pricing the car insurance. Health group paid more than unhelathy group.Willingness to pay for the healthy group is $500 and unhealthy group is $1,000. Do you think this is a good decision? Explain.. Do you think this gives justification to national health service to charge compulsory health insurance?

Answer 1

Ans.

1. Always yes.

According to the company parameters there are two type of factors that affect pricing a car insurance-

1. Demographical factors

2. Car related factors

In Demographical factors includes details of owner and handlers of car like Your gender, age, marital status, geographical location, and credit score all affect your insurance rates in different ways.

And in second parameters includes age of car, likely to be stolen, lack of safety features that prevent accidents, or cost more to repair.

These factors directly or indirectly associate with the care health. If the health index of your car is good and it need not more invest on the repairing will minimize the insurance price instead of old and unhealthy care.

2. The above argument cannot justify for the National Health insurance policy. In case of human insurance the goal of government is to increase the health index in the country and Government have to focus on to insure the health of each individual on the lowest and affordable price and especially to unhealthy parson. So the given model do not work for the national health insurance policy