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.
Showing posts with label Health Insurance Policies. Show all posts
Showing posts with label Health Insurance Policies. Show all posts
Friday, March 5, 2010
Wednesday, October 28, 2009
Star Health Insurance to impart Rs 180 cr
Star Health and allied insurance company, the first stand alone health insurer of India promoted three years ago, will see an additional capital combination of Rs 180 crore this year in tune with its healthy growth in business.
Company Chairman and MD, V Jagannathan told media persons in Chennai on Wednesday, the company has increased its share capital to Rs 138 crore from the mandatory Rs 100 crore within two years of operation. Before December end, the promoters will infuse Rs 100 crore and Rs 80 crore before March end 2009.
This year, it notched up Rs 440 crore at the end of September 30 and is targeting to touch Rs 1000 crore by March end. He said the insurer clocked over 200% growth in gross premium written at Rs 510 crore in 2008-09 against Rs 168 crore in the previous year. It reported Rs 5.27 crore a net profit.
We are not thriving only on Government business but equally growing the market business, which is expected to more than double to Rs 225- 250 crore this year from Rs 90 to Rs 100 crore last year Mr Jagannathan said. He said. In the near future, it will enter group insurance segment as part of the extensive growth in premium and profit envisaged.
Within three years of its operation, it has garnered 8.5% of the market share of the Indian health insurance pie. Former Union Finance Secretary, D C Gupta will join the board shortly. The company, which has tied up with over 4000 hospitals, will also increase the network of offices to 200 next year from 150 now covering the entire country.
Mr Jagannathan said insurer has shown the way forward in health insurance by offering meaningful health insurance covers to infinite population. This included the Aarogyasri health insurance scheme in Andhra Pradesh covering 6.5 crore BPL families in 23 districts, Kalaignar’s ( TN CM) life saving treatment insurance scheme in Tamil Nadu to cover five crore poor and marginally poor and four lakh BPL families in Haryana under RSBY.
It has just got the IRDA’s approval to sell a new policy, Star criticare plus insurance, which aims to provide reimbursement of hospitalisation expenses for treating ailments and medical conditions as well as accidental injury and trauma. It will offer a pre- agreed compensation amount if the insured is diagnosed with a major illness noted in the policy, provided the disabling illness is manifesting for the first time in life.
Company Chairman and MD, V Jagannathan told media persons in Chennai on Wednesday, the company has increased its share capital to Rs 138 crore from the mandatory Rs 100 crore within two years of operation. Before December end, the promoters will infuse Rs 100 crore and Rs 80 crore before March end 2009.
This year, it notched up Rs 440 crore at the end of September 30 and is targeting to touch Rs 1000 crore by March end. He said the insurer clocked over 200% growth in gross premium written at Rs 510 crore in 2008-09 against Rs 168 crore in the previous year. It reported Rs 5.27 crore a net profit.
We are not thriving only on Government business but equally growing the market business, which is expected to more than double to Rs 225- 250 crore this year from Rs 90 to Rs 100 crore last year Mr Jagannathan said. He said. In the near future, it will enter group insurance segment as part of the extensive growth in premium and profit envisaged.
Within three years of its operation, it has garnered 8.5% of the market share of the Indian health insurance pie. Former Union Finance Secretary, D C Gupta will join the board shortly. The company, which has tied up with over 4000 hospitals, will also increase the network of offices to 200 next year from 150 now covering the entire country.
Mr Jagannathan said insurer has shown the way forward in health insurance by offering meaningful health insurance covers to infinite population. This included the Aarogyasri health insurance scheme in Andhra Pradesh covering 6.5 crore BPL families in 23 districts, Kalaignar’s ( TN CM) life saving treatment insurance scheme in Tamil Nadu to cover five crore poor and marginally poor and four lakh BPL families in Haryana under RSBY.
It has just got the IRDA’s approval to sell a new policy, Star criticare plus insurance, which aims to provide reimbursement of hospitalisation expenses for treating ailments and medical conditions as well as accidental injury and trauma. It will offer a pre- agreed compensation amount if the insured is diagnosed with a major illness noted in the policy, provided the disabling illness is manifesting for the first time in life.
Wednesday, October 14, 2009
Reliance Life to strengthen its health insurance portfolio
Anil Ambani group firm Reliance Life Insurance said on 30th September, it is growth its portfolio of health insurance products in the coming months. Eyeing a place among the top-three health insurers in the country within three years,
Reliance Life Insurance currently has one mixture health product providing wealth accumulation along with health insurance.
Reliance Capital CEO Sam Ghosh said. "The company will be increase the portfolio in the coming months with a basket full of health insurance products total reimbursable health expenses, individual and family floater on group and individual product platforms, long term care among others,"
Elaborating further, he said the company would offer 3-5 year policies in the coming months and in the next three years it plans to have a market share of about 10 per cent.
Health insurance market was at around Rs 7,000 crore in 2008-09 and is expected to grow to Rs 41,586 crore by 2016-17.
Reliance Life Insurance has added a new straight up that would focus developing the health segment. While, health insurance policies are mostly provided by general insurance companies, life insurers contribute about five per cent to the overall health insurance business.
Ghosh added. "This vertical will look at the entire value chain of providing and service the health insurance market and offer an all-inclusive product/service package to the customer,"
He said, RLIC will be taking advantage of the 'long term' proposition of health insurance products offered by life insurers, it allows customers to lock in at a lower rate while they are younger and get assured renewability of the product; premium rates are usually fixed for a block of 5 years.
Health insurance penetration in India is very low, as over 90 per cent of the total Indian people has no health insurance cover.
Reliance Life Insurance currently has one mixture health product providing wealth accumulation along with health insurance.
Reliance Capital CEO Sam Ghosh said. "The company will be increase the portfolio in the coming months with a basket full of health insurance products total reimbursable health expenses, individual and family floater on group and individual product platforms, long term care among others,"
Elaborating further, he said the company would offer 3-5 year policies in the coming months and in the next three years it plans to have a market share of about 10 per cent.
Health insurance market was at around Rs 7,000 crore in 2008-09 and is expected to grow to Rs 41,586 crore by 2016-17.
Reliance Life Insurance has added a new straight up that would focus developing the health segment. While, health insurance policies are mostly provided by general insurance companies, life insurers contribute about five per cent to the overall health insurance business.
Ghosh added. "This vertical will look at the entire value chain of providing and service the health insurance market and offer an all-inclusive product/service package to the customer,"
He said, RLIC will be taking advantage of the 'long term' proposition of health insurance products offered by life insurers, it allows customers to lock in at a lower rate while they are younger and get assured renewability of the product; premium rates are usually fixed for a block of 5 years.
Health insurance penetration in India is very low, as over 90 per cent of the total Indian people has no health insurance cover.
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