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Magma HDI General Insurance is planning to introduce a prepaid card that will facilitate payments at outpatient departments and day-care facilities of hospitals. The card will be used like any other debit or credit card but only in hospitals.
According to Swaraj Krishnan, Chief Executive Officer, Magma HDI (MHDI), the “hospital cash facility” — or prepaid health card — will be linked to the company’s upcoming health insurance products in the individual, family and group categories. The amount of cash equivalent in the card will be based on the policy value of the user.
“We have applied to the IRDA (Insurance Regulatory and Development Authority) for clearance. Hopefully, the health insurance products will be introduced by the first half (September) of this fiscal,” he said.
Kolkata-based MHDI is a 74:26 joint venture between Magma Fincorp (of India) and HDI Gerling Industrie Verischerung AG (of Germany). The joint venture company started operations in October 2012.
It has a solvency ratio of 1.97 per cent, against a mandated 1.5 per cent.
Expansion Apart from health insurance, MHDI is also looking to foray into the delayed penalties category of infrastructure insurance. Under this segment, the company will have offerings to insure infrastructure projects so that they do not get delayed or stopped midway.
“The idea is to come in and provide assurance to kick-start projects. It is still a nascent concept in India. HDI has expertise in engineering project solutions and we are looking to leverage that,” Krishnan said.
MHDI’s offerings in the engineering segment include products that mostly cover construction and engineering risks.
The company is also in discussion with various regional rural and co-operative banks for insurance tie-ups in areas such as tractor finance, livestock (apart from poultry) and personal accident coverage.
Currently, motor insurance accounts for over 90 per cent of its turnover.
Growth According to Krishnan, the company is looking to clock over 50 per cent growth to ₹650 crore in FY15. Growth is expected to be come largely from its new offerings in the health and engineering segments.
The company reported a first year premium collection of ₹425 crore last fiscal (2013-14). It is looking to turn profitable by 2016-17.
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