Financial Daily from THE HINDU group of publications
Tuesday, Mar 21, 2006
Financial Daily from THE HINDU group of publications Tuesday, Mar 21, 2006 |
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Money & Banking
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General Insurance Industry & Economy - Health Standalone health insurer gets nod Our Bureau
MR V. JAGANNATHAN
Chennai , March 20 Star Health and Allied Insurance, a health insurance company, expects to launch its first product within a month. The company received its Certificate of Registration from the Insurance Regulatory and Development Authority (IRDA) on March 16. Mr V. Jagannathan, Managing Director & CEO of the company, said the market potential for health insurance was at least Rs 15,000 crore, while only about Rs 1,700 crore was tapped so far. He said general insurance companies had not been able to give this area the desired attention. Mr Jagannathan was earlier Chairman and Managing Director of United India Insurance Company. Mr Jagannathan said that the company would focus mainly on the southern States and expects to have 75 offices in the region. Asked about the reason for the southern focus, he said, "The claims experience in the southern states is much better. The experience in Delhi and Mumbai is not so good." The Star Health and Allied Insurance Company has a capital base of Rs 105 crore, with a 26 per cent foreign direct investment contribution. About 10 per cent has come from Oman Insurance, while the remaining 16 per cent from private investors. The domestic contribution to the capital has come from a large number of industrialists with varied business interests, Mr Jagannathan said. He has projected a premium of Rs 50 crore in the first year of operations and expected to break-even by the second. He said the company would not use third party administrators for the purpose of settling claims.
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