LIC bets big with new health insurance plan

MUMBAI/HYDERABAD:
Life Insurance Corporation of Republic Of India anticipates to supply screen to at least one
crore households within a twelvemonth of the launch of its new wellness coverage product. It is also planning to establish a particular senior citizen’s wellness insurance
policy in owed course, said LIC executive manager director and head, wellness coverage DD
Singh. The product, likely to
be called LIC Health Plus, will give the policyholder the option to take health
insurance screen for his contiguous household â€" partner and children. The
corporation is put to register the merchandise next hebdomad with the coverage regulator. Although the first twelvemonth mark is very ambitious, LIC have the advantage of a
million-plus agents. LIC have roped in reinsurer Muenchen Rhenium to construction the new
product. It is, however, yet
to cement programs to put up a standalone wellness coverage company, said officials. Although inside information of wellness merchandises are yet to be disclosed, LIC had indicated
it was looking at a ‘floater’ program where a sum of money insured could be
shared by the family. LIC had also said it was looking at a wellness policy on the
unit linked platform with a savings
element. LIC have tied up with
eight third-party administrators to pull off claims under the policy. LIC would
not utilize TPAs to settle down claims. For claims settlement, it have tied up with
Syndicate Bank, Axis Depository Financial Institution and Depository Financial Institution of
America. Both non-life and life
companies are acute on cashing in on the growth chances in the health
insurance segment. They are on course of study to offer a batch of products, other than
Mediclaim, to give more than pick to
consumers. Featuring in this
list are new entrants such as as Phoebus DKV, the 2nd base alone health
insurance in the country. Right now less than 3% of the population have a health
insurance cover. With wellness costs on the rise, the regulator also thinks there
is range for coverage companies to widen their range and supply wellness attention at
affordable prices. Last year, public sector insurance companies had told agents that they
will gain no committee on renewals or sale of fresh Mediclaim to people in the
older age group. The principle was these companies were making heavy losings due
to the high claims ratio â€" between 120% to 170%. The companies had also
put an other loading on policies sold to senior
citizens. The Insurance
Regulatory Development Authority (IRDA) have now directed all wellness insurance companies to
cap the insurance premium charged on the renewals of existing Mediclaim policies to soften
the blow on senior citizens, said IRDA chiarman cesium Rao. Insurance companies have
been debarred from hiking the insurance premium by 50% compared to the former year. Simply put, if the company had charged a insurance insurance premium of Rs 100, the premium cannot
exceed Rs 150 at the clip of renewals. The regulator programs to originate action
against insurance companies who make not accede to this norm.