Today The Times of India has carried the study of National Insurance Academy ,according to which 1.08 % of India population is covered under Health Insurance.Tha main finding is;"Very few insurance firms are having their branches in semi urban and rural area.Majority of the semi urban and rural population remains neglected."We are plaesed to know that NIA has reinforced the viewpoint of S K Sethi.It will be worthwhile to consider setting up of the health insurance companies at state level with equity being fixed at Rs 10 crores level.This co...
Sunday, 25 November 2007
Thursday, 22 November 2007
The recent Supreme court of India judgement is a landmark judgementwhich has accepted that incorrect info being provided in the proposal form can lead to policy being repudiated.Even though this judgement pertains to a claim which was lodged on LIC and was repudiated-but the fact is that this will also be applicable for other proposals ,especially health insurance .Good % of persons who are submitting proposals,but have preexisting disease have a tendancy to hide the same on the assumption that insurance company can not come to know about this.Medical...
Wednesday, 21 November 2007
It is with interest I read about this in today's newspaper.It is being projected that something great is to be achieved from Feb 2008.The fact is that even today same thing is available.Question before us is :If someone is having Oriental policy where no claim bonus is not payable .No claim has been lodged during the year and on shifting it to another co will the new company give No Claim cumulative bonus.I doubt it is going to happen.This will result in making a mockery of the portability.Let us see how the Insurance co's come out with solution...
Saturday, 10 November 2007
Mint dated 9 th Nov ,2007 has covered a news item on Premium Return Health Insurance Policy ,which is going to be introduced by ICICI Lombard in near future.As details are not available therefore guess work is going on. "We have been always hearing from Insurance co's that claims being lodged under health insurance are 180% of premium collected and the claims paid are 140% of premium collected said S K Sethi Vice President & Director of Insurance Brokers Assn of India.Return of premium can be possible only in the form of discount at time...
Tuesday, 6 November 2007
Yes ,it is submitted.Recommendations are;IRDA to mandate all insurers to give health insurance to all senior citizens.Insurers to offer variety of plansIncome tax cconcessions to be made progressive.Policies to be made portable.Insurers to offer plans based on healthy ageing.Market size of senior citizens by 2010 will be 173 millio...
This is a very common question which people ask me. It is a very simple and also very difficult question to answer.Reason is Rs 1 lakh is sufficient if a person is going for a minor surgery.Assuming he is on holiday in Kashmir or Uttraranchal and it becomes neccessary to bring him in air ambulance.The charges can be Rs 20000/flying hour to Rs 75000/flying hour.Kidney transplant in a Chennai Hospital costs Rs 25 to Rs 27 lakhs.It is regrettted that no one has thought for air ambulance charges to be covered under the health insurance policy.Ifthe...
Thursday, 1 November 2007
It is interesting to know from newspaper report that an Indian Businessman has imported German Shepherd dog for Rs 29 lakhs.At present Pet insurance policy the owner may buy will covere death risk. It means in the event of the death of the pet sum assured is payable.We wonder whether any Indian Insurance co will issue a cover for a dog for Rs 29 lakhs. Health insurance policy which can cover the treatment of the dog is not available.Such policies are freely available in the world.Let us hope that at least 2 insurance co's will come out with such...
Sunday, 21 October 2007
National was the first one to come out with policy for senior citizens.It was followed by New India and United .Star is the co from Private sector ,which has been offering this policy.Now it is the turn of Oriental to introduce the policy.Salient points of the policy will be ;Entry age 60 yrsMax age upto which the policy will be available will be 85 yrsMax sum assured possible is Rs 2 lakhs only.( Rs 1.5 lakh for New India,RS 3 lakh for United,Rs 1 lakh for National)Premium for age group of 60 to 65 for Rs 1 lakh will be Rs 3850 +Service Tax.This...
Few weeks back we had a conference in Mumbai,which was organized by CII.Now it is the turn of FICCI . This proves my prediction of 2005 (as mentioned in the first edition of the book Best Guide to Buy Health Insurance ) that Health Insurance will be one of the highest growth segment of Indian Insurance Industry.FICCI is organizing a one-day conference on "Sustainable Health Insurance - Need of the Hour" on 29th November, 2007 at Federation House, New Delhi.You will have the opportunity to hear the viewpoint of Mr C S Rao Chairman,IRDA as well...
Tuesday, 16 October 2007
Different insurance co's use different formats for the proposal.Many a times the branches are out of stock of printed forms.While we welcome the independence of all the co's but a standardised form will be a cost effective way to handle the whole thing.It will be easy to follow in this large country.If most of the co's can handle health proposal in 2 pages format then why someone should be using 4 page format.If the survey /study reveals that 4 page format is the right thing then let all of them follow 4 page format.Hats off to Reliance General...
Yes,it is becoming difficult to insure a group of say 25 persons.Most of the co's want that client should take individual policy for every one.Is it that Insurance co's want to increase the number of policies issued by them.In the case of 25 persons they will be able to issue 25 policies.India like any other country survives on small enterprises.A medium size store employing 25 persons wishes to have the policy so that it can retain its employees being attracted towards joining large stores.We sincerely hope that atleast specialised Health Insurance...
Monday, 15 October 2007
Some court judgements on pre existing disease,view point of IRDA & General Insurance Council is that definition of Pre existing disease should be made very clear so that Insurance co's do not use it as an excuse to repudiate the claim. This is a welcome step in the interest of the consumers located all over the country.If it results in broader interpretation then claims ratio will definitely go up.We forsee the impact will result in increase in premium rates in the years to follow.Let us see what happe...
Sunday, 14 October 2007
Simran Kaur was born with a boil at the time of birth and after several years was advised to undergo surgery at the base of the spine. The Insurance Company rejected the claim by declaring it as a preexisting disease.Justice Kapoor said “day to day problems of pain, swelling or fever can not be termed as preexisting disease., thus any attempt on the part of the insurer to repudiate the claim for such non disclosure is not permissible.’We appreciate the judiciary system of India, which is protecting the interests of the consume...
Rejecting the claim in the first instance by declaring it as a preexisting disease is a very common excuse. This is turning out to be a common complaint of more and more insured persons, whom I meet. It is only on persuasion of the insured with Insurance co or its TPA that most of the cases are reconsidered and processed. The common grievance of the insured clients is that they are told this in oral only and not in writing.It is natural that those whose cases are not considered a good number of them either end up in Consumer Forum courts or become...
Friday, 12 October 2007
In UK health policy is sold with long term perspective but in India we sell it with 1 year perspective.Our present system is more on US pattern.For having peace of mind the customers will be happier with 10 years plan but with fixed rates known to them.This is similar to fixed interest rate vs floating interest rate.Recent increase in rates by New India/United -for higher age group going up by 80% or so has really shaken the confidence of the insured...
Apollo DKV is planning different insurance products for the urban, rural and corporate populations. For the urban population, they are developing products to include all — doctor’s consultation, co-pay, outpatient visits and post-illness coverage. In the corporate segment, the products will include preventive health coverage, customised for corporate groups.Products are under development.We feel for OPD the methodoly will be that if 25% is co pay amount ( to be paid by insured ) then he should pay that much amount at the time of consultation .This...
Sunday, 7 October 2007
Budget is under preparation in the Finance Ministry in New Delhi.General Insurance Council has sent a proposal to Government that service tax should be abolished on health insurance policy.Let us put pressure on the Government by sending request in this regard.You can write/print the letter addressed to ;The Finance MinisterGovernment of IndiaNorth BlockNew Delhi 110001Send it to me at following address;Mr S K Sethi449 Kailash Tower 2East of KailahNew Delhi 110065We will collect all the letters and will submit it to The Finance Ministry.Our target...
It was predicted by me in 2005 at the time of release of book Best Guide to Buy Health Insurance that Health insurance business will grow at a faster pace in the years to come.During year ending March 2007 health insurance premium has moved from 5 th position to 3 rd position.Ofcourse first postion is with Motor Insurance.In the year ending march 2009 Health will definitely move to 2 nd position.Let us hope for more and more products and better service from Insurance compan...
LIC is expected to introduce its haelth insurance product during Nov. 2007 . It will be a product where part of the premium will go towards savings and part will go towards risk coverage for health coverage.Claims settlement will be through 8 TPA's on all India basis.However payment will be made through 3 banks;Axis BankBank of AmericaSyndicate BankWhile we are awaiting for the details of the product,yet to be announced-we are of the opinion that+points of the same are;1.Product will be available through large network of agents of LIC2.Product...
Thursday, 4 October 2007
Ambitious Medicity Project of Dr Naresh Trehan (Escorts Heart Centre fame)is taking shape in Gurgaon.Dr Trehan plans to use the combination of Allopathy, Ayurveda, Homeopathy and Chinese Medicine to treat the patients.As health insurance policies of most of the Insurance companies in India cover Allopathy treatment only and do not cover the other 3 systems of treatment,therefore we feel patients wishing to undergo treatment through alternative systems...
Wednesday, 3 October 2007
Every one is curious to know which Insurance co is biggest or which one is growing at a faster pace in Health Insurance segment.IRDA has released the figures and these are as above.Public Sector growth is slowing down while Reliance has shown growth of 686% because of aggresive pricing which they introduced in Dec,20...
Monday, 1 October 2007
On 15 th August Prime Minister had announced that a scheme costing Rs2000 crores will be announced for Health Insurance for people below the poverty line.On 1 st October Finance Minister has announced the scheme.The salient points of the same are;Name is Rashtriya Swastha Bima Yojana (RSBY)No of families to be covered 1.2 croresFamily covers self,spouse,3 childrenBeginning April1,2008Sum assured for the family Rs 30000Smart cards to be used.Valid all over the country.Benefits migratory labour.All existing diseases to be covered.Exclusions may be...
Monday, 24 September 2007
In a country where home remedies are very common and a large number of people have faith in Ayurvedic treatment and Homeopathic treatment-Is it not surprising that Insurance companies do not cover these systems of treatment?Now the change is coming.Iffco Tokio now covers Ayurvedic treatment while for post hospitlization treatment Star Health will cover the Homeopathic treatme...
Sunday, 23 September 2007
Star Health and Allied Insurance Company, is all set to offer India’s first-ever insurance policy for HIV patients, based on the stage of the disease. This is a news,which brings comfort to those wo have been suffering from this disease ,which needs expensive medicines for treatment.Patients with HIV, who were so far denied medical insurance, will now have the comfort of applying for health cover. The insurance policy for HIV patients, will be issued on the stage of the disease. The company will tie up with 1,800 hospitals and labs to conduct the...
We are feeling the impact of market economy in a big way as ICICI Lombard has introduced a new health insurance product called Health Advantage. This is the first product to cover OPD bills paid for consulting doctors/dental treatment expenses/ over the counter purchase of medicines and orthopaedic treatment. It also covers surgeries, accidents and sudden illnesses that usual health insurance products do not cover.Naturally nothing comes free in this world and you have to pay a cost for the everything which is worthwhile.But all this is at a cost....
Wednesday, 19 September 2007
For motor insurance India used to be divided into 2 zones.But for health insurance New India has divided India into 3 zones;Zone 1 MumbaiZone 2 Delhi/BangaloreZone 3 Rest of IndiaThe question arises ;As the difference between rates for 3 zones is very small,is it worthwhile to have 3 rates?A person from zone 3 wishes to go to Delhi or Mumbai for treatment because facilities are not available in his home town in zone 3.Will he be permitted to undergo treatment or not?A person from zone 3 goes to Mumbai and claims I am visiting Mumbai-will he be...
Sunday, 16 September 2007
India is a large country .IRDA has special rules for setting up of health insurance co's by putting in equity of Rs. 25 crores vs Rs. 100 crores required for setting up of a normal non life insurance co.In 2 and a half years time only 2 health insurance co's started working in India.What can be the reasons?1 Shortage of funds -No.I do not believe .In our country even movies are being produced with investment of more than Rs. 25 crores2 Unattractive as a business-With population of 110 crores,every business is boomimg,GDP growth @ 9.3% (I do not...
Friday, 14 September 2007
For a long time we have been habitual of near to 100% cost of hospitalization being paid by the insurance co.National Varishta Bima( senior citizens)has introduced 10% as co pay ,which means 10% will be paid by the insured and rest by Insurance co.Star Health has this fugure at 30 %(with medical examination ) and 50% (without medical examination ).This is a big change for all of us.Insurance co's feel this will result in control on the costs as insured will be conscious of the costs.Let us see how other co's adopt this conce...
Wednesday, 12 September 2007
Business Standard (Sep 13, 2007) has carried the following photo;None of the health insurance policy issued to us covers the cost of helicopter medical evacuation.It is surprising that overseas travel policy issued by various co’s carries sum assured of USD 5,00,000 ( Rs 2 crores+) and in emergency helicopter medical evacuation is also covered/ paid for.Within India Rs 10 lakhs is the max sum assured possible with Cholamandalam.New India is also...
TOI (Sep. 13, 2007) has carried an interesting news item according to which“In 2005 alone, the estimated loss to our national income from diseases like heart ailments, strokes and diabetes, was a staggering $ 9 billions (Rs. 37000 crores)Over next 10 yrs, India may lose more than $ 200 billions (Rs. 8, 00,000 crores)due to employee’s sickness. Some firms are already losing about 14% of their annual working days -51 days /year.Very interesting to note that in India health insurance premium collected during 2006-07 was Rs 3300 crores,which means...
Subscribe to:
Posts (Atom)
