Business Daily from THE HINDU group of publications
Sunday, Apr 22, 2007
ePaper
Business Daily from THE HINDU group of publications Sunday, Apr 22, 2007 ePaper |
|
|
|
|
|
|
|
|
|
|
Home Page
-
Health Money & Banking - General Insurance Marketing - Strategy Location will be key to New India's health policy Radhika Menon
Viable business The product is expected to be launched shortly. The move may bring curbs in terms of where the treatment can be taken.
Mumbai April 21 New India Assurance Company is set to become the first insurance company to launch a health insurance policy for which the premium would be based on policyholder's geographical location. The product may be launched shortly, pending the Insurance Regulatory and Development Authority approval. "The premium will be based on the claims-record as well as the medical costs in the region. Based on this, the premium for policyholders in Mumbai, for instance, will be higher than for those in Bangalore or Chennai," said a senior insurance company official.
Lower cost
Insurance experts say that South India has been subsidising the North because the average cost of treatment is lower in the South. The move could, however, mean that there could be restrictions in terms of where the treatment can be availed. Health insurance could become a more viable business with geography becoming a key indicator in determining the price. New India Assurance is also considering introduction of what could be the largest health insurance policy in the industry, where the sum-assured would be Rs 10 lakh. Currently, the biggest health policy is for Rs 5 lakh.
Growing segment
Insurers say that around 70 per cent of the claims are for less than Rs 1 lakh. So, the premium for a Rs 15 lakh policy could be relatively lower given that companies record fewer claims for large amounts, said an official. The health insurance market has clocked in Rs 3,000 crore in premium in 2006-07, a growth of 36 per cent from the previous year's Rs 2,200 crore. Oriental Insurance Company and National Insurance Company have already introduced new products with revised rates and clauses. Under Oriental's product, introduced in September 2006, the health insurance premium for citizens above 50 years of age has been increased by over 100 per cent. "Earlier, insurance companies were shying away from selling health policies since it was a loss-making business. But companies are now selling their products and the health insurance business is expected to grow at 50 per cent this fiscal," said Mr Pawan Bhalla, MD, Raksha Third Party Administrator.
More Stories on : Health | General Insurance | Strategy
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
