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Our Bureau

No age limit for cover for parents

Chennai , Jan. 12

The country's only standalone health insurance company, Star Health Insurance, has launched a new product that has several unique features.

First, it will cover pre-existing diseases. Second, it will provide cover for `parents' regardless of their age. Third, there is no waiting period for commencement of coverage. Fourth, it will pay for doctors' consultation fees too, including out-patient consultation. (There are, of course, a `few exclusions', but none in fine print.)

But where is the catch? Mr V. Jagannathan, Chairman and Managing Director of the company, told Business Line on Friday that to avail himself of the cover, the patient will have to be admitted into one of the "designated hospitals". If the patient goes to other hospitals, Star's liability will be capped at 50 per cent of the final admissible claim, subject to a maximum of 50 per cent of the sum insured.

Mr Jagannathan believes there would be a good demand for this product, which is for now open to NRIs in West Asia. Star intends to extend the policy to resident Indians also, but over time. There are 4 million Indians in West Asia, many of whom are concerned over the health (expenses) of their parents, for whom no insurance company would offer coverage.

For a sum assured of Rs 1 lakh, the gross premium is Rs 1,751 (including tax). Star charges Rs 438 additionally for including one child and Rs 875 for one more adult.

How will it work for Star? Mr Jagannathan says that with strict control over expenses, it would be possible for Star to make profits on the product.

More Stories on : Health | General Insurance | NRIs | New Products & Services

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