Financial Daily from THE HINDU group of publications
Tuesday, Dec 07, 2004
Financial Daily from THE HINDU group of publications Tuesday, Dec 07, 2004 |
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Money & Banking
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General Insurance Industry & Economy - Health Regional licensing for health insurance sector mooted Our Bureau
New Delhi , Dec. 6 THE Government should consider regional licensing for health insurance to make the sector a more interesting proposition for new entrants, Mr Analjit Singh, Chairman, Max India, has suggested. Speaking as a discussion leader at an interactive session on `Money Matters: The Future of Financial Services' at the India Economic Summit 2004, Mr Singh held that the requirement of Rs 100 crore of minimum capital is stiff as the "value proposition is not strong at this entry cost" He also highlighted that the current income-tax provision of "only eight years for offsetting losses" has little meaning for long-gestation projects such as those in health insurance. Mr Singh pointed out that nothing has so far happened on the health insurance front even as both life and non-life insurance have taken off in the country. He also underscored the need for domain expertise in health insurance for better pricing of products. On bancassurance, he suggested that the issue of allowing one bank to distribute the products of only one insurance company should be reviewed, especially when an insurance company is allowed to tie-up with multiple banks for distribution of its products. On pension reforms, Mr Singh noted that the Government has made it clear that there will be a Pension Fund Regulatory and Development Authority by the end of the current fiscal. "One concern is the restriction on the number of players. It is being said that only six players would be allowed", he said. On the Central Record Keeping Agency, he said that it is still not clear whether there would be a centralised agency or many independent agencies would be set up for this purpose.
More Stories on : General Insurance | Health
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