The penetration of medical insurance is extremely low in our country, at around 15%, including all types of insurance central government health scheme, employee state insurance, group health and individual health. There are concerted efforts initiated by the government as well as the Insurance Regulatory and Development Authority (Irda) to improve the reach of health insurance to all sections of society and safeguard the interest of policy holders.
One of the important initiatives of the regulator is the proposed portability of health insurance. This is to ensure that a customer continues to enjoy benefits under his health policy even if he wishes to change his insurance provider for genuine reasons.
In the current scenario, a customer is more or less wedged to an insurance company, given that if he chooses another insurer during renewal, his policy starts afresh with all the waiting periods commencing again. For the uninitiated, waiting period is the time frame during which some of the claims shall not be payable under the health policy. For most new health policies there is a waiting period of 30 days under which no claim can be made other than accidents. Besides, there is also a one or two years waiting period for diseases like cataract, hysterectomy etc. And for other diseases which may have been existing prior to taking the policy commonly known as pre-existing diseases, the waiting period is for four years.
In simple words, policyholders will no longer be compelled to renew their health policies with their existing insurance company for fear of the waiting period starting all over again. As and when Irda introduces the portable health product in the market, customers who opt for such products will have the freedom to shift insurers without worrying about losing their continuity benefits.
Senior citizens, in particular, will benefit since they will find it difficult to shift their insurer if they are unhappy with their present one, as other companies would be reluctant to offer them new policies.
The introduction of a portable health product would also prove beneficial to insurance companies. This could act as a powerful product to approach the new customer segment hitherto untapped. And with competition, insurance companies would be thriving to continuously improve their efficiency standards in terms of customer engagement and relationship to ensure that the customers do not move away from them citing service deficiency.
In the current market scenario, it is very difficult to make a price comparison between products with exactly the same features. For customers who are price sensitive, opting for a health product with a lower premium might actually harm them at a later stage when they realise that the product features and terms & conditions do not cover (fully or partially) some of the ailments /conditions for which they have actually purchased the health product in the first place.
Portable health product on the other hand would have exactly the same features and terms & conditions and therefore a person intending to buy a portable product has to just compare the price before opting for the insurance company of his choice.
Wednesday, November 3, 2010
Friday, October 22, 2010
Health Cover- Finer Points
Health Insurance is becoming necessity in today’s age. Medical expenses are on the rise with better facilities among hospitals.
Now the question arises, how much health cover one should go for?
1. To decide on the amount one should first see how many people are in the family and how much you can afford.
2. Second thing that one should check what is max percentage on the total sum assured is towards room rent.
Most policies give 1 % so if your policy is for Rs 2 lakh, you can get room rent only for Rs 2000 where as good hospital rates are about 5000-8000, so in that case one should go for policy of 4 lakhs, if you want to get 100% paid back for room rent.
3. One should also ensure that the hospital that is nearest to you is empanelled for cashless facility under the company which you are going for health cover.
4, if your health insurance provider is giving you a health cover and if its total sum assured amount is less, one should opt for another health insurance policy itself.
5.If you have some pre existing disease check with your company, that by what period they will ensure that these diseases are covered.Most health cover after 2-4 years for pre existing diseases.
6. If you are young and just got married, check which Health insurance company covers Maternity charges and from which year and try to opt for that health insurance provider.
Now the question arises, how much health cover one should go for?
1. To decide on the amount one should first see how many people are in the family and how much you can afford.
2. Second thing that one should check what is max percentage on the total sum assured is towards room rent.
Most policies give 1 % so if your policy is for Rs 2 lakh, you can get room rent only for Rs 2000 where as good hospital rates are about 5000-8000, so in that case one should go for policy of 4 lakhs, if you want to get 100% paid back for room rent.
3. One should also ensure that the hospital that is nearest to you is empanelled for cashless facility under the company which you are going for health cover.
4, if your health insurance provider is giving you a health cover and if its total sum assured amount is less, one should opt for another health insurance policy itself.
5.If you have some pre existing disease check with your company, that by what period they will ensure that these diseases are covered.Most health cover after 2-4 years for pre existing diseases.
6. If you are young and just got married, check which Health insurance company covers Maternity charges and from which year and try to opt for that health insurance provider.
Friday, October 8, 2010
Why is purchasing a Private Health Insurance Policy important?
It is agreeable when one is covered with employer’s group health plan which is more affordable than individual healthcare policy, one feels a bit disinterested. But that does not mean the one should not think about investing in one!
In today’s day and age, the economy is very unstable. God forbid if you were to loose your job for some reason or even if you are between jobs for a better position; you will not be covered medically. What if something unfortunate were to happen then? What would be the state of your family? You have worked hard to provide for each and every need of theirs. Don’t you think all your efforts will diminish without proper planning for contingencies? So you have the need to invest in a health insurance plan that would not only cover you but cover your entire family as well.
Following are few basic points to bear in mind when you go for a Health Insurance plan;
• You would need to figure out which Insurer fulfills most of your needs in terms of affordability, peculiarity of coverage etc.
• Do research
Consumers can't find a policy that suites them unless they understand what they need. If you see the doctor frequently, a plan that limits those visits to four times a year would not be wise. But that could be an option someone in his 20s who rarely gets sick.
Likewise, a plan that doesn't cover pregnancy wouldn't be smart for people who want to start families. Some options only cover generic drugs, and that means big medical bills for someone who depends on a brand-name prescription medication.
Before searching for insurance, think about whether you can be added as a dependent to the existing coverage of a spouse or parent.
Premiums - the price of an insurance policy varies depending on variables such as age, health, where you live and how you want your coverage set up. One place to start sorting options is the website www.bimadeals.com.The customer care service helps consumers to understand plan design, helping them find coverage options based on their states and other factors that could affect their rates. They can help customers quickly sort through their options, and they can be especially useful for people who have pre-existing conditions. For people with diabetes or recovering from cancer, finding individual coverage can be difficult or impossible depending on the state in which they live.
Some people also can be turned down because they take high-blood pressure or cholesterol medicine or they recently had hip surgery. But we know which insurers will reject certain conditions, which can save some grief.
Understand: the premium, deductible, co-payment, coinsurance and the maximum amount the policyholder can expect to pay out of pocket each year.
• The deductible is the annual amount a patient pays for care before coverage starts. High-deductible plans come with lower premiums.
• Coinsurance is the percentage a patient pays for medical care generally after a deductible is met. These percentages mean you still could wind up with a big bill for a surgery even if you have good coverage and you've met your deductible.
• The annual maximum is how much you have to spend on coinsurance and other costs before the insurer takes over and covers the majority of your remaining expenses for the year.
• Make sure you understand all the coverage specifications before you pay for a policy. You also should know if your doctors are in the insurer's network because it will cost a lot more for care and visits if they are not.
• It is better to understand hospital coverage and the limits a plan places on it.
Many should be able to find what they need by doing some research, asking the right questions about coverage and using help that's already available. The bottom line is:
• Think about your needs before choosing a plan.
In today’s day and age, the economy is very unstable. God forbid if you were to loose your job for some reason or even if you are between jobs for a better position; you will not be covered medically. What if something unfortunate were to happen then? What would be the state of your family? You have worked hard to provide for each and every need of theirs. Don’t you think all your efforts will diminish without proper planning for contingencies? So you have the need to invest in a health insurance plan that would not only cover you but cover your entire family as well.
Following are few basic points to bear in mind when you go for a Health Insurance plan;
• You would need to figure out which Insurer fulfills most of your needs in terms of affordability, peculiarity of coverage etc.
• Do research
Consumers can't find a policy that suites them unless they understand what they need. If you see the doctor frequently, a plan that limits those visits to four times a year would not be wise. But that could be an option someone in his 20s who rarely gets sick.
Likewise, a plan that doesn't cover pregnancy wouldn't be smart for people who want to start families. Some options only cover generic drugs, and that means big medical bills for someone who depends on a brand-name prescription medication.
Before searching for insurance, think about whether you can be added as a dependent to the existing coverage of a spouse or parent.
Premiums - the price of an insurance policy varies depending on variables such as age, health, where you live and how you want your coverage set up. One place to start sorting options is the website www.bimadeals.com.The customer care service helps consumers to understand plan design, helping them find coverage options based on their states and other factors that could affect their rates. They can help customers quickly sort through their options, and they can be especially useful for people who have pre-existing conditions. For people with diabetes or recovering from cancer, finding individual coverage can be difficult or impossible depending on the state in which they live.
Some people also can be turned down because they take high-blood pressure or cholesterol medicine or they recently had hip surgery. But we know which insurers will reject certain conditions, which can save some grief.
Understand: the premium, deductible, co-payment, coinsurance and the maximum amount the policyholder can expect to pay out of pocket each year.
• The deductible is the annual amount a patient pays for care before coverage starts. High-deductible plans come with lower premiums.
• Coinsurance is the percentage a patient pays for medical care generally after a deductible is met. These percentages mean you still could wind up with a big bill for a surgery even if you have good coverage and you've met your deductible.
• The annual maximum is how much you have to spend on coinsurance and other costs before the insurer takes over and covers the majority of your remaining expenses for the year.
• Make sure you understand all the coverage specifications before you pay for a policy. You also should know if your doctors are in the insurer's network because it will cost a lot more for care and visits if they are not.
• It is better to understand hospital coverage and the limits a plan places on it.
Many should be able to find what they need by doing some research, asking the right questions about coverage and using help that's already available. The bottom line is:
• Think about your needs before choosing a plan.
Thursday, October 7, 2010
Reliance Life forays keen on health insurance
Anil Ambani Group Company Reliance Life Insurance today announced foray into health insurance market with the launch of a product for individuals and family members.
"Reliance Life Insurance Company (RLIC)...forays into the health insurance market with the launch of its first pure reimbursement health insurance plan - ‘Reliance Life Care for You Plan’- for individuals and family members," Reliance Life said in a release.
The policy term under this plan is three years with the premium fixed for the entire period, irrespective of the claims. The plan offers sum insured of up to Rs 10 lakh. The company along with its third party administrators has created a preferred network of over 6,000 hospitals, among the largest hospital network offered by any insurer, across the country to provide cashless hospitalization benefit to the customers.
“Our venture into the health insurance sector is a natural extension of our life insurance business. ‘Reliance Life Care For You’ is our first step in the pure health Insurance space, aimed to help people meet their health care exigencies and expenses at every stage of life effectively,’’ Reliance Life President and Executive Director Malay Ghosh said.
"Reliance Life Insurance Company (RLIC)...forays into the health insurance market with the launch of its first pure reimbursement health insurance plan - ‘Reliance Life Care for You Plan’- for individuals and family members," Reliance Life said in a release.
The policy term under this plan is three years with the premium fixed for the entire period, irrespective of the claims. The plan offers sum insured of up to Rs 10 lakh. The company along with its third party administrators has created a preferred network of over 6,000 hospitals, among the largest hospital network offered by any insurer, across the country to provide cashless hospitalization benefit to the customers.
“Our venture into the health insurance sector is a natural extension of our life insurance business. ‘Reliance Life Care For You’ is our first step in the pure health Insurance space, aimed to help people meet their health care exigencies and expenses at every stage of life effectively,’’ Reliance Life President and Executive Director Malay Ghosh said.
Wednesday, October 6, 2010
Health Insurance Policy
It is true that majority people do not have health insurance coverage. There are few reasons behind this fact namely
• Some believe that it is expensive
• Some people think that they don’t require it because they are not suffering from any major illness
But one fails to remember that a health care plan is something that you can’t afford not to have. Health insurance prepares one for the future in case of emergency or in any other major illness. With the aid of health insurance you will get all your expenses that you have spent in medicines and treatment.
Points to consider while purchasing a Health Insurance Policy:
• Whether you are going to take group plans or individual plans.
Although some people think that it is cheaper to buy a health insurance plan through an employer or via a group health care plan, there are some plan where buying individual health insurance is quite cheaper. Price of health insurance always depends on various factors. If your company is paying high premium then you must get the health insurance at low price and it is possibly best to select this option. If you are healthy and your company is offering a health insurance policy where you are alone responsible to pay the premium then it is advisable to select individual health insurance plan.
You should not forget that group health insurance plans must cover everyone in it that includes preexisting conditions. It is given in state laws and it meant that healthy people included in health insurance plan will balance out the costs that the insurance company needs to pay for individuals with preexisting health conditions that are covered by the similar policy.
• Find cost effective health insurance plans.
You just need let us help you to find a perfect health insurance plan for you. There are thousands of health insurance plans available in the market. Please visit
www.bimadeals.com for best health insurance plans for you because we believe that insurance is by choice.
• Some believe that it is expensive
• Some people think that they don’t require it because they are not suffering from any major illness
But one fails to remember that a health care plan is something that you can’t afford not to have. Health insurance prepares one for the future in case of emergency or in any other major illness. With the aid of health insurance you will get all your expenses that you have spent in medicines and treatment.
Points to consider while purchasing a Health Insurance Policy:
• Whether you are going to take group plans or individual plans.
Although some people think that it is cheaper to buy a health insurance plan through an employer or via a group health care plan, there are some plan where buying individual health insurance is quite cheaper. Price of health insurance always depends on various factors. If your company is paying high premium then you must get the health insurance at low price and it is possibly best to select this option. If you are healthy and your company is offering a health insurance policy where you are alone responsible to pay the premium then it is advisable to select individual health insurance plan.
You should not forget that group health insurance plans must cover everyone in it that includes preexisting conditions. It is given in state laws and it meant that healthy people included in health insurance plan will balance out the costs that the insurance company needs to pay for individuals with preexisting health conditions that are covered by the similar policy.
• Find cost effective health insurance plans.
You just need let us help you to find a perfect health insurance plan for you. There are thousands of health insurance plans available in the market. Please visit
www.bimadeals.com for best health insurance plans for you because we believe that insurance is by choice.
Wednesday, September 29, 2010
Mediclaim, motor insurance portability shortly
Insurance regulator IRDA on Tuesday said that mediclaim policy holders, who are not satisfied with the services, will soon be able to switch service providers at the same premium. The same would also be true for motor insurance policy holders. "It is high time that the insurance industry also moves to offer portability so that the mediclaim and motor insurance policy holders can switch their service provider...We have initiated a debate on the idea of portability and we would be arriving at a conclusion very soon," IRDA Chairman J Hari Narayan said at CII insurance summit.
To a question on whether this portability concept would apply to ULIPs also, he said: "Yes and no. Yes in the sense that there has to be a balance in the churn of ULIP's policy and their portfolio has to be evenly managed."
Narayan, however, added that portability cannot be randomly applied and the portfolio of an insurance company has to be balanced.
To a question on the status of Reliance General Insurance acquiring a south-based insurance company, he said: "We have certain issues which we are trying to resolve through discussions."
The IRDA chief added that work is progressing on formulating merger and acquisition norms for the sector.
"M&A norms would be announced soon. A committee is studying the issue," Narayan said.
To a question on whether this portability concept would apply to ULIPs also, he said: "Yes and no. Yes in the sense that there has to be a balance in the churn of ULIP's policy and their portfolio has to be evenly managed."
Narayan, however, added that portability cannot be randomly applied and the portfolio of an insurance company has to be balanced.
To a question on the status of Reliance General Insurance acquiring a south-based insurance company, he said: "We have certain issues which we are trying to resolve through discussions."
The IRDA chief added that work is progressing on formulating merger and acquisition norms for the sector.
"M&A norms would be announced soon. A committee is studying the issue," Narayan said.
Monday, September 27, 2010
Bajaj Allianz Health Card launched
Bajaj Allianz launched a health card - JiyoFit, in association with Yes Bank, this product aims to encourage customers to lead a healthy lifestyle. This health card is first of its kind to be launched in India.
Bajaj Allianz General Insurance Chief Executive Hemant Kaul says, "Health insurance as a concept is associated with illness and hospitalization. But JiyoFit is an endeavor to shift from managing customers' illness to promoting a healthy and fit lifestyle".
The health card is not attached with a new Mediclaim policy but is an additional facility offered to a Bajaj Allianz health policyholder.
Currently, this initiative will be available in 15 cities which will be expanded further as the demand for the card grows.
Bajaj Allianz General Insurance Chief Executive Hemant Kaul says, "Health insurance as a concept is associated with illness and hospitalization. But JiyoFit is an endeavor to shift from managing customers' illness to promoting a healthy and fit lifestyle".
The health card is not attached with a new Mediclaim policy but is an additional facility offered to a Bajaj Allianz health policyholder.
Currently, this initiative will be available in 15 cities which will be expanded further as the demand for the card grows.
Saturday, September 25, 2010
Oriental Insurance to turn out two new health insurance products
Oriental Insurance Company Limited, one of India's premier insurance companies, is aiming to roll out two new health insurance products by the end of the current financial year.
The PSU insurer is also looking to expand its international operations through opening of a branch in one of the countries of the Gulf region.
"We would be coming out with two new health insurance products before the end of the current financial year. Our objective is to extend the company's health insurance products to the economically disadvantaged people who cannot afford hospitalization costs. As far as motor and fire insurance is concerned, we would not launch new products and we will only be coming out with add-ons of existing products”, R K Kaul, chairman and managing director of Oriental Insurance Company Limited told reporters.
Talking on plans for international expansion, Kaul said, “We are looking to set up a branch in one of the countries of the Gulf region and are awaiting regulatory approval for the same.”
He declined to name the country and the timeline of commencement of operations of the branch. Besides India, Oriental Insurance currently has operations in three countries- Nepal, Kuwait and Singapore.
Oriental Insurance has targeted a premium income of Rs 5470 crore for 2010-11. If achieved, this would be growth of 16.38 per cent over Rs 4700 crore which the company had achieved in 2009-10.
The insurance firm had clocked a growth of 19(%) per cent in the previous fiscal.The company plans to recruit 14,000 direct agents across the country in this financial year.
The PSU insurer is also looking to expand its international operations through opening of a branch in one of the countries of the Gulf region.
"We would be coming out with two new health insurance products before the end of the current financial year. Our objective is to extend the company's health insurance products to the economically disadvantaged people who cannot afford hospitalization costs. As far as motor and fire insurance is concerned, we would not launch new products and we will only be coming out with add-ons of existing products”, R K Kaul, chairman and managing director of Oriental Insurance Company Limited told reporters.
Talking on plans for international expansion, Kaul said, “We are looking to set up a branch in one of the countries of the Gulf region and are awaiting regulatory approval for the same.”
He declined to name the country and the timeline of commencement of operations of the branch. Besides India, Oriental Insurance currently has operations in three countries- Nepal, Kuwait and Singapore.
Oriental Insurance has targeted a premium income of Rs 5470 crore for 2010-11. If achieved, this would be growth of 16.38 per cent over Rs 4700 crore which the company had achieved in 2009-10.
The insurance firm had clocked a growth of 19(%) per cent in the previous fiscal.The company plans to recruit 14,000 direct agents across the country in this financial year.
Monday, August 23, 2010
IRDA on Health insurance cashless dispute
The Insurance Regulatory and Development Authority (IRDA) Friday said the issue of offering cashless treatment under health insurance policies issued by the four government-owned general insurers 'is getting resolved'. IRDA Chairman J. Hari Narayan said that prior to dispute there were only 300 government owned insurers as compared to 400 now.
The four government-owned non life insurers had earlier delisted major hospital chains from offering cashless hospitalization facility for their health insurance policy holders on the ground that the hospitals are over charging the patients.
He was in Chennai to launch the country's first health cum life insurance product introduced by the city-based Star Health and Allied Insurance Company Ltd partnering with private life insurer Shriram Life Insurance Company Ltd. when he clarified.
There are talks of creation of separate regulator for the healthcare sector. Also, Confederation of Indian Industry (CII) has said none of the major super speciality hospitals have signed with the Raksha TPA (third party administrator).
CII’s members are waiting for a response from the insurers and the TPA since the meeting Raksha in Delhi. As on August 12, the hospitals in Delhi have worked out the packaged rates for 42 procedures and submitted to the TPA.
Once cashless is restored in the empanelled hospitals, in the second phase, hospitals and insurers along with other stakeholders of the health insurance ecosystem and the competent authority would work on a classification of hospitals, which would be agreeable to all.
The other side:
Shivinder M. Singh, managing director, Fortis Healthcare said 'There will always be a differential in the levels of care and services provided by hospitals for a single type of illness. This differential is a function of structures, processes and outcomes. A scientific analysis of all these parameters is essential to grade hospitals.'
Sanjeev Bagai, CEO, Batra Hospital and Medical Research Centre said, 'This grading or categorization of hospitals should then translate into pricing of procedures in each grade. Premature conceptualization or inference of this complex process must be avoided'. It is essential that a comprehensive exercise be undertaken of grading hospitals based on their infrastructure, clinical expertise, technology base, clinical outcomes, competency of para-clinical man power, accreditation and standards of care is done.
The four government-owned non life insurers had earlier delisted major hospital chains from offering cashless hospitalization facility for their health insurance policy holders on the ground that the hospitals are over charging the patients.
He was in Chennai to launch the country's first health cum life insurance product introduced by the city-based Star Health and Allied Insurance Company Ltd partnering with private life insurer Shriram Life Insurance Company Ltd. when he clarified.
There are talks of creation of separate regulator for the healthcare sector. Also, Confederation of Indian Industry (CII) has said none of the major super speciality hospitals have signed with the Raksha TPA (third party administrator).
CII’s members are waiting for a response from the insurers and the TPA since the meeting Raksha in Delhi. As on August 12, the hospitals in Delhi have worked out the packaged rates for 42 procedures and submitted to the TPA.
Once cashless is restored in the empanelled hospitals, in the second phase, hospitals and insurers along with other stakeholders of the health insurance ecosystem and the competent authority would work on a classification of hospitals, which would be agreeable to all.
The other side:
Shivinder M. Singh, managing director, Fortis Healthcare said 'There will always be a differential in the levels of care and services provided by hospitals for a single type of illness. This differential is a function of structures, processes and outcomes. A scientific analysis of all these parameters is essential to grade hospitals.'
Sanjeev Bagai, CEO, Batra Hospital and Medical Research Centre said, 'This grading or categorization of hospitals should then translate into pricing of procedures in each grade. Premature conceptualization or inference of this complex process must be avoided'. It is essential that a comprehensive exercise be undertaken of grading hospitals based on their infrastructure, clinical expertise, technology base, clinical outcomes, competency of para-clinical man power, accreditation and standards of care is done.
Friday, August 13, 2010
Cashless hospital cover possibly will come back in a week
Corporate hospitals may restore cashless treatment to policyholders of the four public sector health insurance firms in a week.
Such hospitals as Apollo, Fortis, Max and Medanta will negotiate new package rates with individual third party administrators (TPAs) and arrive at an agreement in the next five to six days, a meeting of the representatives of leading private healthcare chains and the nodal TPA of the public sector undertaking insurance firms decided here today. Delhi-based Raksha TPA represented the insurance industry in today’s talks.
The TPAs are the facilitators between the hospitals and health insurance firms like New India Assurance, United India Insurance, National Insurance and Oriental Insurance.
Pervez Ahmed, managing director of Max Healthcare, who heads the hospital delegation on behalf of industry chamber Confederation of Indian Industry’s National Healthcare Committee, said the decision would be an interim one and a comprehensive agreement will be ready within a month.
He hinted that policyholders might have to pay different levels of premium, depending on the hospitals one opts for treatment.
Such hospitals as Apollo, Fortis, Max and Medanta will negotiate new package rates with individual third party administrators (TPAs) and arrive at an agreement in the next five to six days, a meeting of the representatives of leading private healthcare chains and the nodal TPA of the public sector undertaking insurance firms decided here today. Delhi-based Raksha TPA represented the insurance industry in today’s talks.
The TPAs are the facilitators between the hospitals and health insurance firms like New India Assurance, United India Insurance, National Insurance and Oriental Insurance.
Pervez Ahmed, managing director of Max Healthcare, who heads the hospital delegation on behalf of industry chamber Confederation of Indian Industry’s National Healthcare Committee, said the decision would be an interim one and a comprehensive agreement will be ready within a month.
He hinted that policyholders might have to pay different levels of premium, depending on the hospitals one opts for treatment.
Thursday, August 12, 2010
Pvt hospitals get together insurance firm today
Leading corporate hospitals, which are out of the preferred provider network (PPN) of public sector health insurance firms, will offer standardized treatment packages for nearly 250 procedures to see their PPN status restored soon.
The representatives of hospital chains such as Apollo, Fortis and Max are expected to meet their health insurance counterparts with the new proposals tomorrow.
The move comes after a recent meeting of the heads of the hospitals and the four state-run insurance firms — New India Assurance, United India Insurance, National Insurance and Oriental Insurance — decided to form separate working groups to sort out the pricing issues the insurance firms had with these hospitals.
The groups were expected to sort out a compromise formula within 10 to 30 working days.
The insurance firms had stopped offering cashless services to their policy holders approaching the hospitals that are not in their PPN list as they felt that such hospitals were ‘over charging’ their insured patients.
The hospitals, grouped under industry chambers such as CII and Ficci, had argued that isolated incidents should not be the basis for excluding corporate hospitals from PPN.
“The insurance companies had never raised such an issue before. Now that they have expressed their concerns, we will try to address their problems. Tomorrow’s meeting will not be the final one, but we expect most of the current issues to be solved soon,” a healthcare industry executive, who is part of the negotiations, said today.
The high claim ratio — health insurance claim ratio stood at 130 per cent during 2009-10 — was the main reason for the insurance firms to have a strict scrutiny of the rates being charged by the hospitals for various procedures.
The representatives of hospital chains such as Apollo, Fortis and Max are expected to meet their health insurance counterparts with the new proposals tomorrow.
The move comes after a recent meeting of the heads of the hospitals and the four state-run insurance firms — New India Assurance, United India Insurance, National Insurance and Oriental Insurance — decided to form separate working groups to sort out the pricing issues the insurance firms had with these hospitals.
The groups were expected to sort out a compromise formula within 10 to 30 working days.
The insurance firms had stopped offering cashless services to their policy holders approaching the hospitals that are not in their PPN list as they felt that such hospitals were ‘over charging’ their insured patients.
The hospitals, grouped under industry chambers such as CII and Ficci, had argued that isolated incidents should not be the basis for excluding corporate hospitals from PPN.
“The insurance companies had never raised such an issue before. Now that they have expressed their concerns, we will try to address their problems. Tomorrow’s meeting will not be the final one, but we expect most of the current issues to be solved soon,” a healthcare industry executive, who is part of the negotiations, said today.
The high claim ratio — health insurance claim ratio stood at 130 per cent during 2009-10 — was the main reason for the insurance firms to have a strict scrutiny of the rates being charged by the hospitals for various procedures.
Tuesday, August 3, 2010
Hospital corpse to clarify position on cashless medical insurance
The Association of Hospitals, which represents most private hospitals in the city, will on Wednesday simplify its stand on the issue of cashless medical insurance. Many insurance holders had been left in the pitch as public sector insurance companies had determined to limit cashless mediclaim policies to only those hospitals that characteristic in the favorite Provider Network list drawn up by them.
This covered only 81 hospitals in Mumbai.
The public sector companies had done this saying the hospitals were billing patients advanced if they came under mediclaim.
The companies want hospitals to stay to a set of standard rates for surgeries and medicines.
“Hospitals are being asked to conduct bypass surgeries for Rs 1.8 lakh, which is not likely in a city like Mumbai,” said General Vijay Krishna, chief executive officer (CEO) of Breach Candy Hospital, who is a member of the association.
“The insurance companies are also saying they will buy equipment and medicines straight and give to them hospitals,” he added.
“This is just not practical. If we need some equipment immediately, will we have to wait till it is sent to us.”
“The insurance companies should have held a discussion with us before making such decisions. We have not been given a consideration,” he added.
This covered only 81 hospitals in Mumbai.
The public sector companies had done this saying the hospitals were billing patients advanced if they came under mediclaim.
The companies want hospitals to stay to a set of standard rates for surgeries and medicines.
“Hospitals are being asked to conduct bypass surgeries for Rs 1.8 lakh, which is not likely in a city like Mumbai,” said General Vijay Krishna, chief executive officer (CEO) of Breach Candy Hospital, who is a member of the association.
“The insurance companies are also saying they will buy equipment and medicines straight and give to them hospitals,” he added.
“This is just not practical. If we need some equipment immediately, will we have to wait till it is sent to us.”
“The insurance companies should have held a discussion with us before making such decisions. We have not been given a consideration,” he added.
Wednesday, July 14, 2010
Reliance Life Insurance bets large on health cover up
Anil Ambani-promoted Reliance Life Insurance is cheerful on the growing health insurance market and expects to sell over a million policies this financial.
“There is a huge growth prospective in the health insurance section in India. We plan to valve the highly under-penetrated market to be among the top 3 insurers by 2012 and sell over one million policies this year,” president and executive director Malay Ghosh told The Telegraph.
At present, Reliance Life has a smallest presence in the section, which is subject by general insurance firms such as Bajaj Allianz, ICICI Lombard and Tata AIG, among private players.
According to a report by global research firm RNCOS, the health insurance market premium is projected to produce at a compounded annual rate of over 25(%) per cent between 2009-10 and 2013-14. Premium collections touched $1.31 billion in 2008-09, the Insurance Regulatory and Development Authority (IRDA) said in its yearly report of 2008-09.
Reliance Life, which crossed the 60-lakh blot in total policy sales last month, plans to support its portfolio with innovative products that comprise total reimbursable health expenses, individual and family floater on equally group and individual product platforms, and long-term care.
On the recent withdrawal of cashless flair by many insurers, the company said it would seek positive clarifications from the IRDA before taking any action.
Industry experts said although the health insurance market extended quickly in the past couple of years, it remained largely under-penetrated. “Some of the critical shortcomings include low awareness, non-coverage of out-patient care and obtainable diseases, inefficient cost management, product reach in rural areas and weak retail sharing model,” stated the RNCOS report.
“Apart from a strong product line, quality customer service, contact and training are what create a highly differentiated product,” Ghosh said.
The company aims to break even by the end of this financial.
“There is a huge growth prospective in the health insurance section in India. We plan to valve the highly under-penetrated market to be among the top 3 insurers by 2012 and sell over one million policies this year,” president and executive director Malay Ghosh told The Telegraph.
At present, Reliance Life has a smallest presence in the section, which is subject by general insurance firms such as Bajaj Allianz, ICICI Lombard and Tata AIG, among private players.
According to a report by global research firm RNCOS, the health insurance market premium is projected to produce at a compounded annual rate of over 25(%) per cent between 2009-10 and 2013-14. Premium collections touched $1.31 billion in 2008-09, the Insurance Regulatory and Development Authority (IRDA) said in its yearly report of 2008-09.
Reliance Life, which crossed the 60-lakh blot in total policy sales last month, plans to support its portfolio with innovative products that comprise total reimbursable health expenses, individual and family floater on equally group and individual product platforms, and long-term care.
On the recent withdrawal of cashless flair by many insurers, the company said it would seek positive clarifications from the IRDA before taking any action.
Industry experts said although the health insurance market extended quickly in the past couple of years, it remained largely under-penetrated. “Some of the critical shortcomings include low awareness, non-coverage of out-patient care and obtainable diseases, inefficient cost management, product reach in rural areas and weak retail sharing model,” stated the RNCOS report.
“Apart from a strong product line, quality customer service, contact and training are what create a highly differentiated product,” Ghosh said.
The company aims to break even by the end of this financial.
Monday, July 12, 2010
Stopping cashless medical insurance is break of agreement
It is unfortunate that even public-sector Insurance Companies have joined private-sector ones in their cold attitude towards their individual customers when large number of chief hospitals were de-listed by these public-sector Insurance companies for extending cashless reimbursement for availing medical facilities through mediclaim policies. It is a break of agreement when the facility was discontinued uninformed to policy-holders unexpectedly from 01.07.2010.
However Insurance companies for prospect can issue two types of mediclaim policies, with cashless policies valid at all hospitals as before, at some higher premium than normal policies without cashless ability during treatment. But any such system should be for new policies only. It is pointless to break the contract with policy-holders by midway termination of any earlier prevailing facility including cashless mediclaim at different hospitals.
Union government should combine all public-sector Insurance companies in one united company to save largely on advertisements and overheads.
However Insurance companies for prospect can issue two types of mediclaim policies, with cashless policies valid at all hospitals as before, at some higher premium than normal policies without cashless ability during treatment. But any such system should be for new policies only. It is pointless to break the contract with policy-holders by midway termination of any earlier prevailing facility including cashless mediclaim at different hospitals.
Union government should combine all public-sector Insurance companies in one united company to save largely on advertisements and overheads.
Tuesday, June 29, 2010
Future Generali India to start on health plus term life insurance plan
Following Insurance Regulatory Development Authority's move to allow insurance companies to offer “Health plus Life” products, Future Generali India Life Insurance, the insurance joint business enterprise between Future Group and Generali of Italy, is planning to launch a combo plan in the next 2 months.
“We are looking to launch a health plus term life insurance product, perhaps in the next 2 months. I see this type of product to progressively build over the next 3 to 5 years. It can lead to some other combinations, and set the ball systematic for more complex products,” said Deepak Sood, chief executive officer, Future Generali Life Insurance, on the sidelines of a press meet here today.
In December, the regulator permitted companies to offer “Health plus Life Combo Product” — a policy that will offer life cover along with health insurance. For this, life and non-life insurance companies need to enter into agreements to offer the health-cum-life cover.
At present, about 70(%) per cent of the company's businesses approach from unit linked products. This year, the company is hoping to achieve a new business premium of Rs 1,200 crore, from Rs 486 crore previous years.
The company on Monday launched Future Generali NAV Assure, a unit linked insurance plan, a NAV guarantee unit-linked Insurance plan.
“We are looking to launch a health plus term life insurance product, perhaps in the next 2 months. I see this type of product to progressively build over the next 3 to 5 years. It can lead to some other combinations, and set the ball systematic for more complex products,” said Deepak Sood, chief executive officer, Future Generali Life Insurance, on the sidelines of a press meet here today.
In December, the regulator permitted companies to offer “Health plus Life Combo Product” — a policy that will offer life cover along with health insurance. For this, life and non-life insurance companies need to enter into agreements to offer the health-cum-life cover.
At present, about 70(%) per cent of the company's businesses approach from unit linked products. This year, the company is hoping to achieve a new business premium of Rs 1,200 crore, from Rs 486 crore previous years.
The company on Monday launched Future Generali NAV Assure, a unit linked insurance plan, a NAV guarantee unit-linked Insurance plan.
Friday, June 18, 2010
Health insurance, Life mooted for school teachers
The government is planning life and health insurance cover and a group housing scheme at a subsidized price for 60 lakh primary and secondary school teachers.
While the two insurance schemes will need financial contribution by the Centre, the States and the teachers, the group housing scheme will be sprint at the Central level but will not require financial contribution from the Centre or the States, Union Human Resource Development Minister Kapil Sibal said on Friday. He was addressing a gathering of the National Foundation for Teachers Welfare here.
Thanks to their huge range, the health and life insurance schemes would premium-wise cost much less than individual schemes or even schemes run at the State level. The economics of scale would drive individual premiums down. The life insurance cover would guarantee a minimum of about Rs. 5 lakh on retirement and Rs. 2 lakh on death during service. The health cover, limited to hospitalization of the teacher, the spouse, two children and parents, was being worked on two options — either on a maximum cover of Rs. 1.25 lakh which would signify a lesser premium or a cover of Rs. 3 lakh this would mean a higher premium.
The group housing scheme is being envisaged to be Centrally-administered through a portal, with construction done by the National Building Construction Corporation (NBCC), ground bought at institutional rates and group housing societies formed by teachers. Thus, while there will be no cost to the government, the teachers will get excellence housing at lesser rates without much struggle or fear of being cheated.
To begin with, the Delhi Education Minister announced land for the housing scheme in the capital. Mr. Sibal said the proposals were to show that the country looked after, cared for and appreciated its teachers. He clarified that he too was yet to seek Finance Ministry support.
While the two insurance schemes will need financial contribution by the Centre, the States and the teachers, the group housing scheme will be sprint at the Central level but will not require financial contribution from the Centre or the States, Union Human Resource Development Minister Kapil Sibal said on Friday. He was addressing a gathering of the National Foundation for Teachers Welfare here.
Thanks to their huge range, the health and life insurance schemes would premium-wise cost much less than individual schemes or even schemes run at the State level. The economics of scale would drive individual premiums down. The life insurance cover would guarantee a minimum of about Rs. 5 lakh on retirement and Rs. 2 lakh on death during service. The health cover, limited to hospitalization of the teacher, the spouse, two children and parents, was being worked on two options — either on a maximum cover of Rs. 1.25 lakh which would signify a lesser premium or a cover of Rs. 3 lakh this would mean a higher premium.
The group housing scheme is being envisaged to be Centrally-administered through a portal, with construction done by the National Building Construction Corporation (NBCC), ground bought at institutional rates and group housing societies formed by teachers. Thus, while there will be no cost to the government, the teachers will get excellence housing at lesser rates without much struggle or fear of being cheated.
To begin with, the Delhi Education Minister announced land for the housing scheme in the capital. Mr. Sibal said the proposals were to show that the country looked after, cared for and appreciated its teachers. He clarified that he too was yet to seek Finance Ministry support.
Tuesday, June 8, 2010
United India eyes 15% premium increase in FY10
Public sector general insurer United India Insurance Company is confident of achieving 15(%) per cent growth in its premium income to Rs 6,000 crore this financial year on the back of sound growth from all verticals of the company.
“With tangible improvement in overall economy, we hope to achieve 15(%) per cent growth in premium income this fiscal,” G Srinivasan, CMD of United India Insurance Company said.
United India had posted a net profit of Rs 707 crore in FY10 — a 48(%) per cent rise over the related period last year. Premium income of the company stood at Rs 5,239 crore throughout the same period with an underwriting loss of around Rs 900 crore.
Referring to underwriting losses, he said, “Health and motor insurance are two areas where underwriting losses are higher for the company. While no one is making money from the health insurance section, third-party motor insurance are making losses due to low premium.”
Insurance industry in general is facing edge force in the health insurance section due to group mediclaim policies, rising cost of health expenses and general inflation. Also, the government decision to allow life insurer to sell health insurance products, margins have been additional squeezed.
Srinivasan also said the premium for third-party motor insurance claims should be increased to lessen the underwriting losses.
“With tangible improvement in overall economy, we hope to achieve 15(%) per cent growth in premium income this fiscal,” G Srinivasan, CMD of United India Insurance Company said.
United India had posted a net profit of Rs 707 crore in FY10 — a 48(%) per cent rise over the related period last year. Premium income of the company stood at Rs 5,239 crore throughout the same period with an underwriting loss of around Rs 900 crore.
Referring to underwriting losses, he said, “Health and motor insurance are two areas where underwriting losses are higher for the company. While no one is making money from the health insurance section, third-party motor insurance are making losses due to low premium.”
Insurance industry in general is facing edge force in the health insurance section due to group mediclaim policies, rising cost of health expenses and general inflation. Also, the government decision to allow life insurer to sell health insurance products, margins have been additional squeezed.
Srinivasan also said the premium for third-party motor insurance claims should be increased to lessen the underwriting losses.
Wednesday, May 5, 2010
Max Bupa Health start on life insurance industry
Max Bupa Health Insurance, a joint venture between Max India Limited and Bupa Group, an international healthcare provider, commenced operations previous week with the launch of a flagship health insurance product called ‘Heartbeat’.
‘Heartbeat’ is an individual and family oriented health insurance cover for Indians across all age groups. The new insurance plan is presented in 3 levels platinum, gold and silver provides cover for expenses as well as in-patient treatment, pre-and post-hospitalisation, maternity and childcare benefits. There is no age limit and family members across all age groups are insured with an inclusive cover ranging from Rs 2 lakh to Rs 50 lakh, depending on age.
Alliance with hospitals
Max Bupa Health Insurance has a direct working relationship with a network of 375 hospitals and healthcare providers and it will service customers directly not including third party involvement, through an in-house team of relationship managers. The company also has a 24/7 health line so that customers have easy access to health care.
With a pan India launch in six cities — Mumbai, Delhi, Pune, Chennai, Hyderabad and Bangalore, the company sees huge potential in India. Talking to Deccan Herald, Max Bupa Health Insurance Chief Executive Damien Marmion said, “India has only 3(%) per cent penetration of health insurance so we see a wonderful scope here. Also, the youth with a large disposable income comprise a majority of the population. We want to spread the message of the importance of healthier, more successful lives to them.” The company has invested Rs 151 crore in the venture.
‘Heartbeat’ is an individual and family oriented health insurance cover for Indians across all age groups. The new insurance plan is presented in 3 levels platinum, gold and silver provides cover for expenses as well as in-patient treatment, pre-and post-hospitalisation, maternity and childcare benefits. There is no age limit and family members across all age groups are insured with an inclusive cover ranging from Rs 2 lakh to Rs 50 lakh, depending on age.
Alliance with hospitals
Max Bupa Health Insurance has a direct working relationship with a network of 375 hospitals and healthcare providers and it will service customers directly not including third party involvement, through an in-house team of relationship managers. The company also has a 24/7 health line so that customers have easy access to health care.
With a pan India launch in six cities — Mumbai, Delhi, Pune, Chennai, Hyderabad and Bangalore, the company sees huge potential in India. Talking to Deccan Herald, Max Bupa Health Insurance Chief Executive Damien Marmion said, “India has only 3(%) per cent penetration of health insurance so we see a wonderful scope here. Also, the youth with a large disposable income comprise a majority of the population. We want to spread the message of the importance of healthier, more successful lives to them.” The company has invested Rs 151 crore in the venture.
Wednesday, March 10, 2010
Bharti AXA offers 10% discount on top of health plans for women
On the eve of International Women’s day, non-life insurer - Bharti AXA General Insurance offered 10 per cent discount on all its health Insurance products for women. The discount will be available till March 31, 2010.
The insurer said that the main objective of the promotion is to increase knowledge amongst women of the need for financial protection against health risks and other stress-related diseases that women today are prone to.
“With today’s fast paced lifestyles and nuclear families, women today are more horizontal to health related problems than they ever were before. High stress levels at the workplace and other lifestyle related health risks; all point towards the need for better health care & health insurance to provide much needed help is case of an unwelcome possibility,” said Amarnath Ananthanarayan CEO, Bharti AXA General Insurance.
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The insurer said that the main objective of the promotion is to increase knowledge amongst women of the need for financial protection against health risks and other stress-related diseases that women today are prone to.
“With today’s fast paced lifestyles and nuclear families, women today are more horizontal to health related problems than they ever were before. High stress levels at the workplace and other lifestyle related health risks; all point towards the need for better health care & health insurance to provide much needed help is case of an unwelcome possibility,” said Amarnath Ananthanarayan CEO, Bharti AXA General Insurance.
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Friday, March 5, 2010
New India cheapest health insurance policy
Public sector general insurance company, New India Assurance (NIA), is looking to launch one of the cheapest health insurance policies, with the yearly insurance premium for a minimum Rs 1 lakh sum assured for less than Rs 1,000.
The insurer is hoping to maintain the price of the policy low by restricting the choice of hospitals, and covering only major illnesses.
M Ramadoss, chairman-cum-managing director, New India Assurance said. “By restricting the choice of the insured, we will see how the premium could be brought down. We can also look at sum insured at more than Rs 1 lakh. We hope to file the application with the regulator in the next one month,”
The proposal comes at a time when almost all general insurance companies have raised their health insurance premiums by 20-30 per cent over the last year.
At present, for a person of up to 35 years, the minimum premium rates for up to Rs 1 lakh sum assured is Rs 1,000 or more.
Also, with SBI general insurance slated to enter the market this year, the competition in the industry is likely to step up.
“The entry of SBI in the general insurance industry can make a impression in the market,” said Ramadoss.
New India Assurance is the largest general insurance company with gross premium last year at about Rs 6,200 crore.
General insurance companies have been trying to reduce the loss ratio in the health insurance companies by reducing exposure to corporate health policies or repricing them upwards.
The overall growth of the health insurance portfolio has come down to about 5-6 per cent in the financial year 2008-09, against about 30 per cent in the previous year, said Ramadoss.
This financial year, New India Assurance is looking at a growth rate of about 16 per cent in terms of gross premium, at Rs 7,250 crore (with Rs 6,000 crore from India, and the rest from foreign branches).
Ramadoss said, the general insurance industry was likely to grow at about 10-11 per cent, with the gross premium collection at Rs 34,000 crore. In the last financial year, the gross premium collection was Rs 31,000 crore.
Last year, New India Assurance had a net profit of Rs 270 crore. This year, there might be a reduction in the net profit to about Rs 250 crore, due to lesser investment profit, said Ramadoss.
The insurer is hoping to maintain the price of the policy low by restricting the choice of hospitals, and covering only major illnesses.
M Ramadoss, chairman-cum-managing director, New India Assurance said. “By restricting the choice of the insured, we will see how the premium could be brought down. We can also look at sum insured at more than Rs 1 lakh. We hope to file the application with the regulator in the next one month,”
The proposal comes at a time when almost all general insurance companies have raised their health insurance premiums by 20-30 per cent over the last year.
At present, for a person of up to 35 years, the minimum premium rates for up to Rs 1 lakh sum assured is Rs 1,000 or more.
Also, with SBI general insurance slated to enter the market this year, the competition in the industry is likely to step up.
“The entry of SBI in the general insurance industry can make a impression in the market,” said Ramadoss.
New India Assurance is the largest general insurance company with gross premium last year at about Rs 6,200 crore.
General insurance companies have been trying to reduce the loss ratio in the health insurance companies by reducing exposure to corporate health policies or repricing them upwards.
The overall growth of the health insurance portfolio has come down to about 5-6 per cent in the financial year 2008-09, against about 30 per cent in the previous year, said Ramadoss.
This financial year, New India Assurance is looking at a growth rate of about 16 per cent in terms of gross premium, at Rs 7,250 crore (with Rs 6,000 crore from India, and the rest from foreign branches).
Ramadoss said, the general insurance industry was likely to grow at about 10-11 per cent, with the gross premium collection at Rs 34,000 crore. In the last financial year, the gross premium collection was Rs 31,000 crore.
Last year, New India Assurance had a net profit of Rs 270 crore. This year, there might be a reduction in the net profit to about Rs 250 crore, due to lesser investment profit, said Ramadoss.
Thursday, March 4, 2010
New India Assurance plans small-premium mediclaim cover
New India Assurance Company, the market chief in the general insurance sector, plans to launch by the end of 2010-11 a low-premium health insurance policy for the masses, according to its Chairman and Managing Director, Mr M. Ramadoss.
The planned mediclaim policy, expected to be one of the lowest priced in the market, would cover a selected number of diseases and also contain the number of hospitals from which the policyholders can avail themselves of the medical services, Mr Ramadoss said.
The insurer plans to file the policy with the Insurance Regulatory and Development Authority in a month.
“The whole idea is to carry down the premium rates by restricting the choices to the insured,” Mr Ramadoss said on the sidelines of a seminar organized by the Confederation of Indian Industry here. The policyholders in this case would be given a list of hospitals for availing themselves of the medical services and the policy might cover a selected 51 common diseases, he pointed out.
“At present, the standard annual premium rate for a mediclaim policy is Rs 1,000 for a sum insured of Rs 1 lakh. We wish to bring down the rates in the new policy to the sub-thousand levels,” he said. The sum insured for the policy may be Rs 1 lakh or more, he added.
He, however, maintained that the policy was still in the scheming stage and the financials for the same were not yet frozen.
He said .It also planned to launch a new motor insurance policy in 2010-11 and would look at revising upwards the prices of some of its existing health insurance products.
The Gross Direct Premium Income (GDPI) of the company from Indian operations may increase to Rs 6,000 crore in 2009-10, up from Rs 5,200 crore in 2008-09. Its GDPI from 23 branches located abroad will increase from Rs 1,000 crore last financial to Rs 1,250 crore in 2009-10, he pointed out.
He added. The general insurance sector was estimated to grow at 10-11 per cent this fiscal with the GDPI collected by all the companies expected to exceed Rs 34,000 crore.
The planned mediclaim policy, expected to be one of the lowest priced in the market, would cover a selected number of diseases and also contain the number of hospitals from which the policyholders can avail themselves of the medical services, Mr Ramadoss said.
The insurer plans to file the policy with the Insurance Regulatory and Development Authority in a month.
“The whole idea is to carry down the premium rates by restricting the choices to the insured,” Mr Ramadoss said on the sidelines of a seminar organized by the Confederation of Indian Industry here. The policyholders in this case would be given a list of hospitals for availing themselves of the medical services and the policy might cover a selected 51 common diseases, he pointed out.
“At present, the standard annual premium rate for a mediclaim policy is Rs 1,000 for a sum insured of Rs 1 lakh. We wish to bring down the rates in the new policy to the sub-thousand levels,” he said. The sum insured for the policy may be Rs 1 lakh or more, he added.
He, however, maintained that the policy was still in the scheming stage and the financials for the same were not yet frozen.
He said .It also planned to launch a new motor insurance policy in 2010-11 and would look at revising upwards the prices of some of its existing health insurance products.
The Gross Direct Premium Income (GDPI) of the company from Indian operations may increase to Rs 6,000 crore in 2009-10, up from Rs 5,200 crore in 2008-09. Its GDPI from 23 branches located abroad will increase from Rs 1,000 crore last financial to Rs 1,250 crore in 2009-10, he pointed out.
He added. The general insurance sector was estimated to grow at 10-11 per cent this fiscal with the GDPI collected by all the companies expected to exceed Rs 34,000 crore.
Thursday, February 18, 2010
Future Generali unveils complete health insurance cover
Future Generali India Insurance Company has launched a comprehensive Health Insurance cover - `Future `Criti-Care. It is an `accelerated` critical illness policy wherein the entire sum assured will be paid out in the event of pain a critical illness, diagnosis of terminal illness, before the end of the term.
These conditions cover almost every possible major medical risks that can be encountered in life. The sum assured will be paid on the opinion of any of the covered critical illness which occurs first during the term of the policy. By combining the risks in this way, the cost of the policy is reduced to a reasonable level.
Future Criti-Care`s claim payment process is really simple, customer friendly, hassle free and does not involve any third party administrators (TPA).
The customer submits the required documents to support the claim directly to the insurer who intern processes the claim and makes the payment directly to the customer. For e.g. Unlike other health insurance repayment products wherein only the amount spent for treatment is reimbursed, Future Criti-Care policy provides the insured a total lump sum payment (as per the policy conditions) which can be used by the insured at one`s judgment for savings, treatment & other miscellaneous expenditure for the well being of the family.
The plan covers twelve Critical illnesses that have high incidence rates among the Indian population viz; first heart attack, coronary artery bypass surgery (CABG), cancer, kidney failure, stroke, coma, liver failure, primary pulmonary arterial hypertension, multiple sclerosis, major organ transplant, aorta graft surgery and total blindness. The Insurance cover under this policy starts from 2 Lacs and be as high as 50 Lacs.
On this occasion, K. G. Krishnamoorthy Rao, CEO, Future Generali India Insurance Company said, ``this plan provides maximum personal protection in just one single policy at an affordable price. By taking a Future Criti- Care Plan, one can feel at peace of being protected against most serious illnesses. It is a comprehensive cover at a realistic price with minimum paperwork.
These conditions cover almost every possible major medical risks that can be encountered in life. The sum assured will be paid on the opinion of any of the covered critical illness which occurs first during the term of the policy. By combining the risks in this way, the cost of the policy is reduced to a reasonable level.
Future Criti-Care`s claim payment process is really simple, customer friendly, hassle free and does not involve any third party administrators (TPA).
The customer submits the required documents to support the claim directly to the insurer who intern processes the claim and makes the payment directly to the customer. For e.g. Unlike other health insurance repayment products wherein only the amount spent for treatment is reimbursed, Future Criti-Care policy provides the insured a total lump sum payment (as per the policy conditions) which can be used by the insured at one`s judgment for savings, treatment & other miscellaneous expenditure for the well being of the family.
The plan covers twelve Critical illnesses that have high incidence rates among the Indian population viz; first heart attack, coronary artery bypass surgery (CABG), cancer, kidney failure, stroke, coma, liver failure, primary pulmonary arterial hypertension, multiple sclerosis, major organ transplant, aorta graft surgery and total blindness. The Insurance cover under this policy starts from 2 Lacs and be as high as 50 Lacs.
On this occasion, K. G. Krishnamoorthy Rao, CEO, Future Generali India Insurance Company said, ``this plan provides maximum personal protection in just one single policy at an affordable price. By taking a Future Criti- Care Plan, one can feel at peace of being protected against most serious illnesses. It is a comprehensive cover at a realistic price with minimum paperwork.
Monday, February 8, 2010
Religare opts for singly entry into health insurance business
Religare Enterprises is likely to foray alone in the Health Insurance space, though sources close to the development said that it had not lined out the prospect of roping in a partner later.
In June, Religare had signed a non-binding term sheet with Swiss Re to set up a health insurance joint venture. But three months later, the two parted ways.
“We are evaluating the option of going alone and may soon apply for R1, R2 and R3 license,” said Anuj Gulati, Chief Executive Officer Religare Health Insurance. R1, R2 and R3 are different stages of approval arranged by the Insurance Regulatory and Development Authority, with R3 being the final go-ahead.
So far, Reliance General is the only non-life insurer to not have any foreign joint venture partner.
On the life side, Reliance Life and Sahara Life do not have partners, though the previous is now in the hunt for an investor to raise funds to finance its expansion.
Insurers said foreign partners bring in knowledge to run the business, which is required more than the capital. The minimum capital required for setting up both life and non-life insurance is Rs 100 crore. More capital is required as the business grows but the need for funds on the general insurance side was minor.
Last year, when L&T parted ways with Travelers, it went ahead to seek regulatory approval for venturing into the non-life insurance gap.
The company expects to start process in another two months. Another tie-up that insolvent last year was Hero-Ergo and Indiabulls-Societe Generale while Edelweiss is setting up a Life Insurance joint venture with Tokyo Marine.
Insurance industry executives said that with the private sector present in the Indian market for nearly 10 years, local capacity had been created and that will help Indian companies go solo.
Apart from the fact that general insurance required lower capital, a group like Religare could easily put in the required funds till the company achieved break-even, the sources said.
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In June, Religare had signed a non-binding term sheet with Swiss Re to set up a health insurance joint venture. But three months later, the two parted ways.
“We are evaluating the option of going alone and may soon apply for R1, R2 and R3 license,” said Anuj Gulati, Chief Executive Officer Religare Health Insurance. R1, R2 and R3 are different stages of approval arranged by the Insurance Regulatory and Development Authority, with R3 being the final go-ahead.
So far, Reliance General is the only non-life insurer to not have any foreign joint venture partner.
On the life side, Reliance Life and Sahara Life do not have partners, though the previous is now in the hunt for an investor to raise funds to finance its expansion.
Insurers said foreign partners bring in knowledge to run the business, which is required more than the capital. The minimum capital required for setting up both life and non-life insurance is Rs 100 crore. More capital is required as the business grows but the need for funds on the general insurance side was minor.
Last year, when L&T parted ways with Travelers, it went ahead to seek regulatory approval for venturing into the non-life insurance gap.
The company expects to start process in another two months. Another tie-up that insolvent last year was Hero-Ergo and Indiabulls-Societe Generale while Edelweiss is setting up a Life Insurance joint venture with Tokyo Marine.
Insurance industry executives said that with the private sector present in the Indian market for nearly 10 years, local capacity had been created and that will help Indian companies go solo.
Apart from the fact that general insurance required lower capital, a group like Religare could easily put in the required funds till the company achieved break-even, the sources said.
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Friday, February 5, 2010
Keep on healthy, Keep on wealthy
The age of touting mutual funds is over and the age of selling fear has started. Fright for your life, fear for your health, fear for your loved ones. The excitement to say no to the pesky neighbourhood insurance sales guy is strong within all of us. But before actually banishing him from your life, just stop for a moment and do a quick 'health check'.
Health costs have been rising insidiously in double digits, year on year, for the last few years. Many of us are still impractical when it comes to the costs of a longish stay in a hospital.
More importantly, costs can be far higher once the hospital part is done with. It's the post surgery care that often eats large holes into our finances. This is rarely covered by the traditional Mediclaim Policy, which mostly covers hospitalization.
Previously, our choices were limited--there was mediclaim or mediclaim. In more recent years, a few more options have come up. Life Insurance Companies have been offering riders that cover some critical illnesses. In the last year or so, insurance companies, both government and private, are offering individual health policies worth considering. These don’t eliminate the need for the traditional mediclaim, but help you top up and catch up with the rising costs.
For example, non-hospital expenses can be covered by the 'critical illness cover' which must be bought alone. Similarly, say you are having a waterfall or some other surgery that doesn't require you to be in hospital; 'surgical cover' is an add-on where you get a fixed benefit regardless of the bill amount.
As always, when there are more choices, it's a bit of a land mine to navigate when you want to estimate whether to top up your health cover and if so with what, and how much. The sweat is in the nitty gritty, which diseases are covered, whether to take a Mediclaim family policy or a floater.
But once its done, at least you can heave a sigh of assistance that you won’t get wiped out financially if you fall ill. The table below can help start the wheels turning.
More Information about Health Insurance
Health costs have been rising insidiously in double digits, year on year, for the last few years. Many of us are still impractical when it comes to the costs of a longish stay in a hospital.
More importantly, costs can be far higher once the hospital part is done with. It's the post surgery care that often eats large holes into our finances. This is rarely covered by the traditional Mediclaim Policy, which mostly covers hospitalization.
Previously, our choices were limited--there was mediclaim or mediclaim. In more recent years, a few more options have come up. Life Insurance Companies have been offering riders that cover some critical illnesses. In the last year or so, insurance companies, both government and private, are offering individual health policies worth considering. These don’t eliminate the need for the traditional mediclaim, but help you top up and catch up with the rising costs.
For example, non-hospital expenses can be covered by the 'critical illness cover' which must be bought alone. Similarly, say you are having a waterfall or some other surgery that doesn't require you to be in hospital; 'surgical cover' is an add-on where you get a fixed benefit regardless of the bill amount.
As always, when there are more choices, it's a bit of a land mine to navigate when you want to estimate whether to top up your health cover and if so with what, and how much. The sweat is in the nitty gritty, which diseases are covered, whether to take a Mediclaim family policy or a floater.
But once its done, at least you can heave a sigh of assistance that you won’t get wiped out financially if you fall ill. The table below can help start the wheels turning.
More Information about Health Insurance
Saturday, January 2, 2010
Global mediclaim await jet-setting executives
Globe trotting executives will no longer have to buy an overseas mediclaim policy every time they fly abroad. Apollo DKV Health Insurance will soon launch a mediclaim policy that will be valid anywhere in the world — the first of its kind in India.
Currently, heath insurance policies reimburse claims that are incurred in India. Those travelling abroad need to buy overseas mediclaim policies which are valid for a maximum of six months. Although, a worldwide policy would be very expensive, it is likely to find takers among CEOs where the premium is borne by the company.
Antony Jacob, CEO, Apollo DKV, said that the new offering targeted at senior executives is part of the company’s plan to be present in every segment of the health insurance business. “We are offering health insurance under the Rashtriya Swaran Bima Yojana which caters to those below the deficiency line.
Mr Jacob said. We also have an Rs 20 lakh health insurance policy — which is the only one of its kind in the country. In between, we have a host of plans,”
According to Shobana Kamineni, whole time director, Apollo Munich, and part of the Apollo Group which has promoted the company, Munich Re and Apollo will invest Rs 500 crore in the health insurance business over five years. The partners have already invested around Rs 200 crore in the business.
The health insurance company has recently renamed itself as Apollo Munich Health Insurance, following the decision of Munich Re, which owns the DKV brand, to centralise its health business within a new division under Munich Re.
“What we are looking at is the possible of this market. We expect that the market would be around Rs 35,000 crore by 2015. Even if there are 15 players, anyone with a significant share would need to invest a lot of money.”
She added that while this investment may not be visible in terms of physical assets, the company would be creating assets in the form of employees and a base of policyholders.
“Munich Re as partners will be a game changer as they have the best underwriting practices and the best knowledge in health insurance,” she said. Since Apollo DKV was launched last year, the company has appointed Mckinsey on board to rewrite its mission in terms of what essentially includes a study by AC Nielsen.
Currently, heath insurance policies reimburse claims that are incurred in India. Those travelling abroad need to buy overseas mediclaim policies which are valid for a maximum of six months. Although, a worldwide policy would be very expensive, it is likely to find takers among CEOs where the premium is borne by the company.
Antony Jacob, CEO, Apollo DKV, said that the new offering targeted at senior executives is part of the company’s plan to be present in every segment of the health insurance business. “We are offering health insurance under the Rashtriya Swaran Bima Yojana which caters to those below the deficiency line.
Mr Jacob said. We also have an Rs 20 lakh health insurance policy — which is the only one of its kind in the country. In between, we have a host of plans,”
According to Shobana Kamineni, whole time director, Apollo Munich, and part of the Apollo Group which has promoted the company, Munich Re and Apollo will invest Rs 500 crore in the health insurance business over five years. The partners have already invested around Rs 200 crore in the business.
The health insurance company has recently renamed itself as Apollo Munich Health Insurance, following the decision of Munich Re, which owns the DKV brand, to centralise its health business within a new division under Munich Re.
“What we are looking at is the possible of this market. We expect that the market would be around Rs 35,000 crore by 2015. Even if there are 15 players, anyone with a significant share would need to invest a lot of money.”
She added that while this investment may not be visible in terms of physical assets, the company would be creating assets in the form of employees and a base of policyholders.
“Munich Re as partners will be a game changer as they have the best underwriting practices and the best knowledge in health insurance,” she said. Since Apollo DKV was launched last year, the company has appointed Mckinsey on board to rewrite its mission in terms of what essentially includes a study by AC Nielsen.
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