The Hindu Business Line : Star Health targets Rs 80-cr premium in maiden year

CREATING HEALTH AWARENESS: Students participating in a rally to mark the `World Anti-Diabetic Day' organised by Star Health and Allied Insurance in Chennai on Tuesday. - S. Thanthoni

Chennai , June 27

Star Health and Allied Insurance Company is confident of securing Rs 80-crore premium income in its first year of operations. Within 45 days of operation, the company has opened 57 offices and plans 28 more before the middle of next month. Writing 30 lakh health policies in the current year is not a big deal, according to the company's Managing Director, Mr V. Jagannathan. So far, the company has earned a premium income of Rs 4 crore.

Star Health is capitalised at Rs 105 crore and has a non-life insurance licence. However, the company intends to focus on health insurance because "there is lot of money in it". Barely about 10 per cent of the Indian health insurance potential has been tapped, Mr Jagannathan, formerly chairman and managing director of the public sector United India Insurance, told journalists here on Tuesday.

Health premium in the country is of the order of Rs 1,750 crore, but there is a lot to be done. Importantly, the growth in health premium does not depend on how well the economy is doing, he pointed out.

But is health insurance not risky? Mr Jagannathan replied that health insurers faced risks from two areas — high claims due to sickness and high claims owing to unnecessary tests or fraudulently inflated bills.

Star Health, Mr Jagannathan said, had safeguards against both. A screening system ensures that persons who are already sick do not get cover.

Star Health has an overriding protection, through a reinsurance arrangement with General Insurance Corporation. All claims beyond the claims ratio of 90 per cent will be picked up by GIC. "No other insurer has this comfort in India," Mr Jagannathan said.

Star Health intends to introduce overseas mediclaim and personal accident policies. Munich Re has been hired as the settlement agency.

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