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Our Bureau

Chennai , Dec. 6

Star Health and Allied Insurance Company Ltd, a stand-alone health insurance provider, has obtained permission from the Insurance Regulatory and Development Authority (IRDA) to use registered insurance agents to sell its policies. According to the IRDA statement, an agent can now represent a life, a non-life and a stand-alone health insurance company.

IRDA has permitted Star Health to operate through agents for two years, after which it would decide on extending the permit. According to Mr V. Jagannathan, Chairman-cum-managing Director, Star Health, this move will provide a level-playing field to the company.

So far, the company has been operating through 650 marketing staff. "Now, we plan to add at least 7,000 agents a month to this work force," said Mr Jagannathan.

Differential premium

The company has also written to IRDA seeking permission to charge 20 per cent extra premium in North and West Indian markets owing to high hospitalisation costs in these regions. In the South, the claims ratio is not more than 60 per cent if one is prudent, said Mr Jagannathan. But in North and West India the claims ratio was as high as 90 per cent, he said.

. "IRDA has promised to support this differential premium concept if we provide statistical evidence," said Mr Jagannathan.

New products

Star Health will introduce new insurance products in the market. These include two low premium policies targeted at the masses, a student's overseas travel policy, diabetes policy, dental care policy and trauma care policy.

The company has collected premium of about Rs 14 crore over the last four months, including a Rs 10-crore premium from the Andhra Pradesh Government to provide personal accident cover for 1.09 crore people below the poverty line. The company has submitted a bid to the Andhra Pradesh Government to cover medical insurance for these people. Star Health plans to end this fiscal with about Rs 55 crore premium.

More Stories on : General Insurance | Health

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