only 1% Indians have health insurance

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 will focus on rural and semi urban area in an extensive manner.

Incidentally will some one conduct a survey in any PSU say United and find out how many proposals are refused straight away at branch level.Is it that branch team is focussing on profitability of the branch while head office goes on releasing ads by spending money.

Repudiation of policy in case incorrect info is provided Supreme Court

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 science has progressed to such an extent that it is very easy to find out that disease has been there for how many years,if not being accurate to years,months & days.

SC judges said" The purpose for taking a policy of insurance is not in our opinion,very material.It may serve the purpose of social security but then the same should not be obtained with a fraudulent act by the insured.Proposal can be repudiated if a fraudulent act is discovered the proposer must show that his intention was bonafide."

Portability of Health Insurance policy to be introduced from February 2008

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 to such problems.

Premium Return Health Policy - a new product ,what it will be

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 of renewal in case no claim is lodged during the year.Alternatively premium to be charged will be higher -it means product under Premium Return Policy will be suitable for High networth individuals 'he said.

Comments are invited.Especilaly from readers ,who might be from USA and are familiar with this type of product.

IRDA Committee on health insurance of senior citizens submits report

Yes ,it is submitted.

Recommendations are;

IRDA to mandate all insurers to give health insurance to all senior citizens.

Insurers to offer variety of plans

Income 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 millions.

What should be sum assured for health insurance?

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 sum insured is Rs 1 lakh and a person is reimbursed Rs 50000 for surgery but is not reimbursed Rs 150,000 then how a person will feel.

Most probably he will feel cheated.

Is health insurance policy available for pets

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 policy.It is time that insurance co's come out with specialised products to cater to niche market .Innovation in product development is the need of the day.