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Rising health care costs and double digit inflation in medical expenses are driving up sales of health insurance products.
According to the Insurance Regulatory and Development Authority, the industry recorded 33.1 per cent growth in health insurance premiums collected in FY2010-11.
Experts in the insurance industry say customers are now increasingly exploring options such as riders and top-ups to their existing insurance policy.
Look for enhancement
“About 25 per cent of our customers are looking for an enhancement in the sum assured while renewing their policy. Also, customers of our flagship product Health Guard, which is a basic health cover, are opting for hospital cash and critical illness rider in their policy,” said Mr T.A. Ramalingam, Head Underwriting, Bajaj Allianz General Insurance.
Top-ups are becoming popular and 30 to 35 per cent of Max Bupa's customers have opted for them, said Mr Damien Marmion, CEO. The main riders and top-ups that the company is offering are hospital cash, critical illness, personal accident and surgical cash. These riders and top-ups are being offered by insurance companies to existing health/life policies or to those customers who already have an indemnity cover mostly through their employers and want to have top-up cover which will pay over and above the claim payment on any other indemnity policy.
“Top-up is a great relief for customers. They are a very good value addition as they are a cheaper option. Moreover, one is not required to go through an additional medical check-up for it,” said Mr. Satkam Divya, Business Head, Rupeetalk.com.
Riders are touted as the insurance industry's innovation for customising the insurance policy to the extent possible. They are essentially add-ons to insurance policies which help the policyholder cover himself financially for an additional set of risk events.
More demand
According to Mr Sandeep Asthana, Country Head – India, Sun Life Financial, which is the joint venture partner of Birla Sun Life Insurance Company, going ahead there would be more demand for riders in insurance plans and other forms of protection, in addition to life cover.
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