ORIENTAL GAME FOR $1M HEALTH COVER

Kolkata: Oriental Insurance Co Ltd, the Delhi-based non-life insurance major, is moving out of its public sector mindset and looking at the idea of a health policy with a cover of up to $1 million, which will entitle the insured to go for treatment anywhere in the world. M Ramadoss, chairman and managing director, said public sector insurance Companies like Oriental are usually directed into the low-end and 'Janata' segment, but there is no reason for them not to target high net worth individuals (HNIs), considering that the PSU insurers have the highest financial strength, the government's backing and longest-standing market presence.

"One person came to me recently and said he wants a health insurance product with a coverage of $1 million, and he can go anywhere in the world to receive treatment, but he was skeptical of our ability," Ramadoss said.

Against this cover of $1 million or Rs 4.37 crore, Oriental's highest health cover at present is Rs 5 lakh.

Ramadoss said the policy is at "a very preliminary stage, but nothing has been finalised so far."

"What I am saying is that in health, we should have a low premium, but we can also come up with very premium products, and there is no constraint," Ramadoss said. "People think only private Companies can do it."
Ramadoss pointed out that competition is increasing in the insurance segment, with more players entering the national scene and some even speaking of regional players. So it is imperative for PSU Companies to focus on service.

Source: The Financial Express