‘Cancer insurance becoming a key market’

Cancer insurance is going to be an important segment for the healthcare insurance market and a niche insurance product because of rising awareness of cancer risks and the increasing cost of treatment, says Sujoy Manna, Vice-President (Products), HDFC Life.

The simplification of the procedures to buy an insurance plan and the easing of regulations by the IRDA are also helping in popularising cancer insurance, Manna told BusinessLine . HDFC Life recently launched a cancer care plan that provides financial support to policyholders on diagnosis of cancer. “We are the only private life insurance company to offer such a product,” Manna claimed.

However, in a populous country such as India, cancer insurance coverage is very low; the penetration of insurance as such, including healthcare and life, is also abysmal. More than three-fourths of cancer patients pay for their own treatment.

This makes it a market with potential as the cost of treatment increases and people’s income and awareness of risks rise, Manna pointed out.

On average, the cost of treating lung cancer among males and breast cancer among females ranged between ₹3 lakh-25 lakh.

Manna said HDFC Life’s cancer care plan provided for a fixed lump sum benefit (25 per cent of the sum insured) on diagnosis of early-stage cancer and 100 per cent for major cancer. It also provided for a regular income. “Being financially prepared for the cancer risk is half the battle won,” Manna said.

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