The Hindu Business Line : Insurers competing for State health cover schemes

Several States including Maharashtra, Gujarat, Goa, Uttaranchal and Jammu and Kashmir are planning to launch free or subsidised insurance schemes for poor people and women in the State.

The Assam Government has already introduced a State-level insurance scheme. The States' plans are part of the Union Government's initiative to increase public spending on health to 2 per cent of the GDP by 2009 and provide heath insurance to people below the poverty line.

The State Government insurance schemes involve large number of policies worth crores of rupees.

According to insurance industry sources, ICICI Lombard has been awarded the Assam Government's health insurance contract for Rs 25 crore.

The State Government of Goa has invited bids from insurance companies for providing health insurance to over 12 lakh people. The contract is said to be valued at Rs 30-40 crore.

ICICI Lombard and some public sector general insurance companies are understood to have bid for the contract.

The policy being designed for the Goa Government scheme is a "Family floater product" offering a sum assured of Rs 50,000 in the case of general ailments and Rs 1,50,000 as a `super speciality cover' in the case of critical illnesses, said an insurance company official. Family floater policies cover a family where the premium is based on the ages of the members.

Uttaranchal and Jammu and Kashmir are also believed to be initiating similar programmes to insure their population. The Gujarat Government is planning a health insurance programme for women who are below poverty line and under the age of 40. This is similar to the scheme being planned by Maharashtra exclusively for women.

Though the State Government will have to spend from its exchequer for this special insurance programme, health insurance programmes for people below the poverty line will be subsidised by the Union Government, said an insurance company official. According to industry sources, the Government-sponsored schemes are attractive for insurance companies as they get a large volume of business under one scheme.

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