Get one and be safe, one serious illness can bankrupt you these days(actually it always has). But my point is even a week of hospitalization can be pretty expensive. And don't be under an impression you will be able to travel to Bihar or wherever when the need arises. During cases of emergency those are not practical solutions.
I am not too sure about that. I think medical insurance hasn't yet become all pervasive in India, and thankfully so.
Insurance companies are there to make profit, and so will tend to exploit fear to maximize their profits. Leading to inflated costs, as it has happened in US.
So I am against insurance in this form, unless it works like a non-profit cooperative. In fact Dr. Devi Shetty has also innovated here, with a scheme which costs as little as Re. 5 per month (1/60 USD per month) and provides heart coverage to rural Indians. It works as a cooperative scheme of course.
I am surprised, Insurance companies, even exist. As they should be the first thing to be replaced by Software (as in 'Software eating the world' by Marc Andressen)... It should happen, will just take some time, I guess.
So, I think, India can still save itself from corporate medical insurance. As seen in some countries like Canada, a fully public health care system, works as good, if not better.
On a personal note, after having, earlier, taken medical insurance for me and family by paying some 9000/- Rs per annum and getting a cover of 300000/- Rs. I decided this year to not renew it.
But of course, I won't dare to prescribe it generally, each person must take his own decision.
Appendix: 1) http://arachnoid.com/wrong/index.html (ctrl-f 'Insurance is a wise investment')
I'm assuming the the HN-India audience can hustle Rs500k. My two cents is that you shouldn't sweat it in India if you don't have health insurance.
However, if you get something like cancer in India, not insurance policy will help: the cost of treatment is just too high. You will go bankrupt.