The Hindu Business Line : LIC health product may hit market in Dec

LIC Health Plus
The product is not based on the cashless transaction model.
Targets: One crore families and Rs 5,000 crore mop-up in the first year.
In the pipeline is a senior citizen’s health insurance policy.

Phalguna Jandhyala

New Delhi, Nov. 29 Life Insurance Corporation of India (LIC) hopes to launch its health insurance product by the third week of December. The company has already submitted the proposal to the Insurance Regulatory and Development Authority (IRDA) and is awaiting clearance.

“We are hoping to get the necessary clearances from the regulator soon and plan to launch the product by the third week of December. Our actuaries are in touch with the regulator and there is likely to be a meeting on the issue shortly,” an official close to the development told Business Line here on Thursday.

The product, likely to be called LIC Health Plus, would be on the lines of floater plan which would give the policyholder the option to take health insurance cover for his immediate family. LIC has tied up with Munich Re to structure the new product.

The official also said that the product is not based on the cashless transaction model and the company is targeting to provide health cover to close to one crore families in the first year of the launch of the product.

According to the official, the product will not be a direct competition to the existing products of non-life insurance companies.

He added that, initially, the health insurance operations would be a part of the life insurance business, and they are yet to cement plans to set up a standalone company.

It has tied up with eight third-party administrators (TPAs) to manage claims under the policy and has tied up with Syndicate Bank, Axis Bank and Bank of America for the settlement.

“The TPA would first advise LIC on the permissibility of the claim, based on which LIC would instruct the bankers to issue the claim cheque to its health insurance policyholders. This will help us settle claims much faster than what is happening in the market at the moment. We are targeting to issue the claims cheques within 24 hours of the approval,” the official said.

The official added that the company hoped to mop up around Rs 5,000 crore from the health insurance policy in the first year. “Also in the pipeline is a senior citizen’s health insurance policy,” he said.

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