Apollo Hospitals, DKV in health insurance JV

Apollo Hospitals Group and DKV, Europe’s largest private health insurer and a Munich Re Group company, today launched India’s second standalone health insurance company.

Apollo Hospitals Group holds 74 per cent while DKV holds the remaining 26 per cent stake in the joint venture company — Apollo DKV Insurance Company – which is expected to roll out products by middle of September this year.

The two companies have together invested a total of Rs 108 crore in proportion to their shareholding, and they expect to offer cashless products and services in over 4,000 hospitals across the country and on a reimbursement basis in all hospitals.

“Pricing will be risk-adequate and at par with other players. But our products will have much more value-added services in-built and will give true value for money,” said Shobana Kamineni, director, Apollo Hospitals Group.

To begin with, the health insurance company will offer traditional products such as in-patient hospitalisation cover, critical illness cover, overseas travel & health cover and personal accident cover. Later, the company will launch user-friendly products for both individuals and groups.

“We expect to cover one million lives in the next two-three years,” said Jochen Messemer, Director, Apollo DKV.

Apollo DKV is the second health insurance company after Star Health and Allied Insurance, which was launched in 2006.

“Though health insurance industry is growing at 30 per cent, the health insurance penetration in the country is only 2 per cent. Against the potential of Rs 15,000 crore business, the 13 health insurers operating in the country managed to collect only Rs 3,300 crore in 2006-07,” added Kamineni.

Source: Business Standard