Preliminary findings from the analysis of baseline data reveal considerable unmet demand for insurance. Less than 1% of households have accident or health insurance, but they face frequent and serious health shocks. The average health shock cost Rs. 1,900, while the average per-capita monthly expenditure was just Rs. 708. Households often paid health expenses using a high-interest loan from moneylenders. The data suggest that SKS households, despite being members of a microcredit organization, face considerable financial risk from health shocks. Bundling catastrophic health insurance with microfinance has promise to alleviate this risk.
That is from the results and policy implications of the study titled "Providing Health Insurance through Microfinance Networks in Rural Karnataka, India"