IRDA has released statistics pertaining to Indian Health Insurance Industry for the year 2008 -09 and some of the facts are:
This is the truth. If you do not agree the do let us have your comments.
Monday, May 31, 2010
Facts Indian Health Insurance 2010
Facts Indian Health Insurance 2010
IRDA has released statistics pertaining to Indian Health Insurance Industry for the year 2008 -09 and some of the facts are:
This is the truth. If you do not agree the do let us have your comments.
IRDA has released statistics pertaining to Indian Health Insurance Industry for the year 2008 -09 and some of the facts are:
This is the truth. If you do not agree the do let us have your comments.
Thursday, May 27, 2010
Health Insurance Policy with sum assured of Rs 50 Lakhs seems to be a favourite number of Indian Insurance Companies – Yes the time has changed
Health Insurance Policy with sum assured of Rs 50 Lakhs seems to be a favourite number of Indian Insurance Companies – Yes the time has changed
Max Bupa made the beginning in our country by coming up with Health Insurance Policy for maximum sum assured of Rs 50 Lakhs and within few weeks it has been able to sell 15 policies. This shows that there was an unfulfilled demand for such product. May be the initial success of this product has appealed so much to other insurance companies that now we hear:
•New India Assurance
•Apollo Munich
•Iffco Tokio
all of them have started working actively for coming up with similar or a competitive product. An improvement being considered by New India is that its product will not be a normal domestic product (only within India) but will also be valid for overseas treatment.
We welcome this move to upgrade the Indian customer by offering premium product to him.
We have questions before us:
(i) Under the name of Medical Tourism USA Insurance Companies are sending their patients to India which shows that Indian Health Care industry has achieved certain level of acceptance in the world and is economical also.
(ii) Under New India policy- will HNI’s of India start going to foreign countries during summer season for treatment under the policy. Will the travel expenses be also paid as part of claim? If we are charging higher premium let us charge something more and include this facility also. This is the wish of many potential customers, who talked to me in last 2 days.
(iii) Is it worth while to have a product where few hundred policies are to be issued during the year? Will these polices be handled by same TPA’s or a special team will be set up.
If you have some more questions do let us know. We will be pleased to have your comments.
Max Bupa made the beginning in our country by coming up with Health Insurance Policy for maximum sum assured of Rs 50 Lakhs and within few weeks it has been able to sell 15 policies. This shows that there was an unfulfilled demand for such product. May be the initial success of this product has appealed so much to other insurance companies that now we hear:
•New India Assurance
•Apollo Munich
•Iffco Tokio
all of them have started working actively for coming up with similar or a competitive product. An improvement being considered by New India is that its product will not be a normal domestic product (only within India) but will also be valid for overseas treatment.
We welcome this move to upgrade the Indian customer by offering premium product to him.
We have questions before us:
(i) Under the name of Medical Tourism USA Insurance Companies are sending their patients to India which shows that Indian Health Care industry has achieved certain level of acceptance in the world and is economical also.
(ii) Under New India policy- will HNI’s of India start going to foreign countries during summer season for treatment under the policy. Will the travel expenses be also paid as part of claim? If we are charging higher premium let us charge something more and include this facility also. This is the wish of many potential customers, who talked to me in last 2 days.
(iii) Is it worth while to have a product where few hundred policies are to be issued during the year? Will these polices be handled by same TPA’s or a special team will be set up.
If you have some more questions do let us know. We will be pleased to have your comments.
Monday, May 17, 2010
Portability of health insurance
As predicted by us vanilla product will be introduced by all general insurance / health insurance companies in near future as the product details are being sent to IRDA. New health insurance product to be sold by all companies will have following features:
•Max sum assured – Rs 2 Lakhs only
•Preexisting diseases will be covered after 4 years
•Max entry age will be 65 years
•No claim bonus – Reduced premium or increased sum assured will be given. Companies like Oriental will have to change their policy of not giving benefit to the customers as far as this policy is concerned.
•Indicative premium for Rs 1 Lakh – up to age 18 years will be Rs 1000, which means that we are sticking to existing rates. We can expect Rs 1400 for someone who is in the 18 -35 age bracket.
•To be introduced by all companies. We feel Max Bupa may not come out with this product. Let us see what will be the stand of Regulator (IRDA) with respect to this-will Max Bupa be asked to introduce this product ?
Let us see what is the ultimate outcome when the product is introduced?
Our suggestion :
Let all the companies come out with a joint advertising campaign –explain benefits of having health insurance. We should aim for 10 crores policies to be sold under this category. With an average policy size of Rs 2500 this should mean premium of Rs. 25000 crores.
•Max sum assured – Rs 2 Lakhs only
•Preexisting diseases will be covered after 4 years
•Max entry age will be 65 years
•No claim bonus – Reduced premium or increased sum assured will be given. Companies like Oriental will have to change their policy of not giving benefit to the customers as far as this policy is concerned.
•Indicative premium for Rs 1 Lakh – up to age 18 years will be Rs 1000, which means that we are sticking to existing rates. We can expect Rs 1400 for someone who is in the 18 -35 age bracket.
•To be introduced by all companies. We feel Max Bupa may not come out with this product. Let us see what will be the stand of Regulator (IRDA) with respect to this-will Max Bupa be asked to introduce this product ?
Let us see what is the ultimate outcome when the product is introduced?
Our suggestion :
Let all the companies come out with a joint advertising campaign –explain benefits of having health insurance. We should aim for 10 crores policies to be sold under this category. With an average policy size of Rs 2500 this should mean premium of Rs. 25000 crores.
Monday, May 10, 2010
23 Life Insurance Companies are planning to enter India.
23 Life Insurance Companies are planning to enter India.
Many life insurance companies of the worked are planning to enter India.
We under stand the list is of 23 companies and as and when we come to know about more names we will be put the same in our blog.
In addition to this following Health Insurance Companies are also planning to enter
Question before us is – where are the people to manage these companies?
We in Insurance Foundation of India feel that at least 100 Management Schools (out of 1450 operating in India ) should start MBA Insurance as a separate course during 2011 session otherwise shortage of manpower in itself will retard the growth of this industry.
Many life insurance companies of the worked are planning to enter India.
We under stand the list is of 23 companies and as and when we come to know about more names we will be put the same in our blog.
In addition to this following Health Insurance Companies are also planning to enter
Question before us is – where are the people to manage these companies?
We in Insurance Foundation of India feel that at least 100 Management Schools (out of 1450 operating in India ) should start MBA Insurance as a separate course during 2011 session otherwise shortage of manpower in itself will retard the growth of this industry.
Friday, April 30, 2010
Best policy of today may not remain the best policy after few years
Best policy of today may not remain the best policy after few years
Large number of clients contacts us to know which the best policy is so that they can buy the same. Everyone’s wish is to buy the best. One of the main parameter on which decision is taken is lowest price as on today. Our suggestion is that take broader view of the whole scenario because what is lowest today may not remain lowest after few years. Is it not affect that last year Reliance was having very low premium rates and during April 2010 they suddenly increased the rates by as high as 231%. They are now one of the highest priced one and are 10th position in a list of II. You do not change insurance company frequently therefore let us see some rates as an example,
Premium for family floater policy
(Age of head of the family 35yrs/ 45yrs- 2 Adults+ 2 Children)
Only premium can not be the basis as there are many parameters like issue of policy & ID Cards ,claims settlement, brand goodwill .
Apollo Munich & Max Bupa are 2 companies who do not put a limit on room rent @ 1% of sum assured.
In comparison of Iffco-Tokio vs Apollo Munich you save Rs. 3335 by not taking Apollo Munich as a today. Assuming a claim is lodged and hospitalization is needed for 6 days where room rent is Rs. 7000 per day. You will notice that hospital will charge Rs. 42000. Apollo Munich will pay Rs.4200 where else Iffco-Tokio will pay Rs. 3000x6=Rs.18000. You will have to pay out of your pocket Rs.24000.
At the same time you will notice Apollo Munich which is No. 7 for age 35 yrs becomes No.10. When the head of the family becomes 45 yrs, which means as age will go up Apollo Munich will increase the premium rates at a faster rate.
Large number of clients contacts us to know which the best policy is so that they can buy the same. Everyone’s wish is to buy the best. One of the main parameter on which decision is taken is lowest price as on today. Our suggestion is that take broader view of the whole scenario because what is lowest today may not remain lowest after few years. Is it not affect that last year Reliance was having very low premium rates and during April 2010 they suddenly increased the rates by as high as 231%. They are now one of the highest priced one and are 10th position in a list of II. You do not change insurance company frequently therefore let us see some rates as an example,
Premium for family floater policy
(Age of head of the family 35yrs/ 45yrs- 2 Adults+ 2 Children)
Only premium can not be the basis as there are many parameters like issue of policy & ID Cards ,claims settlement, brand goodwill .
Apollo Munich & Max Bupa are 2 companies who do not put a limit on room rent @ 1% of sum assured.
In comparison of Iffco-Tokio vs Apollo Munich you save Rs. 3335 by not taking Apollo Munich as a today. Assuming a claim is lodged and hospitalization is needed for 6 days where room rent is Rs. 7000 per day. You will notice that hospital will charge Rs. 42000. Apollo Munich will pay Rs.4200 where else Iffco-Tokio will pay Rs. 3000x6=Rs.18000. You will have to pay out of your pocket Rs.24000.
At the same time you will notice Apollo Munich which is No. 7 for age 35 yrs becomes No.10. When the head of the family becomes 45 yrs, which means as age will go up Apollo Munich will increase the premium rates at a faster rate.
Is loss making portfolio of Health Insurance repelling foreign companies to enter India.
Is loss making portfolio of Health Insurance repelling foreign companies to enter India.
It is learnt that Religare Health Insurance may go in for 100% Indian owned venture as no agreement could be reached with 4 foreign companies, with whom discussions were being held. Reasons can be:-
1) Is it that delay in increase of foreign equity from 26% to 49% is responsible for this.
2) Is it that foreign companies are finding that losing portfolio of health insurance is going to continue for at least 5 years then why not delay the entry in to India. They may enter when the companies have incurred heavy losses and are in a mood to readjust the pricing.
Your comments are invited.
It is learnt that Religare Health Insurance may go in for 100% Indian owned venture as no agreement could be reached with 4 foreign companies, with whom discussions were being held. Reasons can be:-
1) Is it that delay in increase of foreign equity from 26% to 49% is responsible for this.
2) Is it that foreign companies are finding that losing portfolio of health insurance is going to continue for at least 5 years then why not delay the entry in to India. They may enter when the companies have incurred heavy losses and are in a mood to readjust the pricing.
Your comments are invited.
Monday, April 26, 2010
Cloud results in large number of claims under Overseas Travel Policy on Indian Insurance Companies
Cloud results in large number of claims under Overseas Travel Policy on Indian Insurance Companies
European cloud and consequent disruption of flights has resulted in claims being filled/ lodged by those who had taken overseas travel policies, which also cover the risk delay in flight is covered under this policy.
Large numbers of flights to and from Europe were disrupted for a week due to volcanic dust over the continent.
Overseas travel policies give a maximum cover of $1,000 and are likely to result in good number of claims. They cover claims arising from delay or cancellation of trips due to unavoidable circumstances. Passengers will have to provide their bills to make a claim, say company executives. Other than cancellation of trips, travel insurance policies cover medical insurance, personal accident, check-in delays, loss of passport and baggage loss. Within the package, these claims have individual caps. Some cap check-in delay claims at $200, while all companies have capped the trip cancellation cover at $1,000.
According to Mr. TR Ramalingum said Bajaj Allianz General Insurance’s head of reinsurance.
“We have got some intimations of claim. Policy holders will have to present their bills or relevant papers. Just cancellation of a trip will not lead to reimbursement”
European cloud and consequent disruption of flights has resulted in claims being filled/ lodged by those who had taken overseas travel policies, which also cover the risk delay in flight is covered under this policy.
Large numbers of flights to and from Europe were disrupted for a week due to volcanic dust over the continent.
Overseas travel policies give a maximum cover of $1,000 and are likely to result in good number of claims. They cover claims arising from delay or cancellation of trips due to unavoidable circumstances. Passengers will have to provide their bills to make a claim, say company executives. Other than cancellation of trips, travel insurance policies cover medical insurance, personal accident, check-in delays, loss of passport and baggage loss. Within the package, these claims have individual caps. Some cap check-in delay claims at $200, while all companies have capped the trip cancellation cover at $1,000.
According to Mr. TR Ramalingum said Bajaj Allianz General Insurance’s head of reinsurance.
“We have got some intimations of claim. Policy holders will have to present their bills or relevant papers. Just cancellation of a trip will not lead to reimbursement”
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