Star Health offers policies for aged, diabetics

Coverage for HIV patients soon

Chennai, July 5 Star Health and Allied Insurance Company today launched two new policies—one for elderly people, aged between 61 years and 69 years and another for known diabetics.
At a press conference here, the company’s Chairman and Managing Director, Mr V. Jagannathan, said that the policy for the elderly, called ‘Senior Citizen’s Red Carpet Policy’, would be offered with no pre-acceptance medical screening. Those in the eligible age group could even buy the policy on-line. Once covered, they could continue to be covered for life—renewal would not be denied even after they leave the age bracket, Mr Jagannathan said.
The policy costs Rs 5,000 a year for a sum insured of Rs 1 lakh and Rs 10,000 for Rs 2 lakh. Those who have no illness would be given a ‘good features discount’ of 10 per cent.
The ‘Diabetes Safe’ policy is meant for known diabetics and will cover complications arising out of diabetes such as diabetic retinopathy requiring laser procedure, diabetic nephropathy leading to chronic renal failure requiring dialysis or transplant surgery and diabetic foot ulcer requiring micro vascular surgery. Annual premium starts from Rs 805.
Mr Jagannathan said that Star Health would soon launch two more policies. One is for those who are ‘HIV positive’. Policy holders will get a lumpsum payment if they become a full blown AIDS patient.
“There are 5.7 million HIV positive people in India, of whom 0.75 million are full blown AIDS patients,” he said, observing that there was a need for offering them coverage. The other policy will be a “high-end” one, assuring sums upwards of Rs 10 lakh.
Star Health, the country’s only stand-alone health insurance company, earned premium income of Rs 100 crore in the first 12 months of its operations, ending May 2007.
Mr Jagannathan said the company’s premium income this year would be over Rs 250 crore. Thus far in the current year, Star Health has earned a premium of Rs 41 crore, he said.
Star Health’s 100th branch in the country, at Kolkata, was inaugurated here today by the Chairman and Managing Director of Indian Bank, Mr M.S. Sundararajan. Mr Jagannathan said the insurance company would add 28 branches this year.

Source: The Hindu Business Line

Australian firm in fray for HDFC`s Chubb stake

Australia-based Insurance Australia Group (IAG) is in advanced talks to buy a 26 per cent stake in HDFC Chubb General Insurance, following the buyout of Chubb’s stake by HDFC.

Sources said the two other strong contenders were Germany-based Ergo, part of the Munich Re Group, and US-based Travelers.

“We are still examining the proposals. It is too early to say anything now,” said a HDFC executive, when contacted.

IAG, which operates in Australia, New Zealand, Asia and the UK, underwrites more than $7.5 billion of insurance premiums each year. The group insures more than $900 billion worth of property.

The group’s net assets were $4,517 million on December 31, 2006. Last year, IAG had acquired leading motor insurance broker Hastings Business and Equity Insurance Group of Europe.

This May, HDFC bought out Chubb Global Financial Services Corporation of the US. HDFC ended its joint venture with Chubb Corporation following differences over the style of running the business and risk appetites. The buyout price was not disclosed. The joint venture’s capital is currently Rs 125 crore.

HDFC Chairman Deepak Parekh had said earlier that he expected to receive a premium for the 26 per cent stake in HDFC Chubb. He had also said HDFC had been allowed to use the HDFC Chubb name for two months. The corporation said it expected to have a partner before the renaming.

Source: Business Standard

Star Health eyes Rs 250 cr premium

Star Health and Allied Insurance Co Ltd, backed by the launch of new products in the current fiscal, is eyeing a premium income of Rs 250 crore in the 2007-08 period.

The Chennai-based standalone health insurance company has so far garnered Rs 41 crore in the current fiscal. During 2006-07, it earned a premium income of approximately Rs 100 crore.

The company has announced the launch of two policies, one for senior citizens and the other for diabetics. The ‘Senior Citizen’s Red Carpet’ insurance policy will offer hospitalisation benefits for people in the age group of 60-69 years at the entry level.

The sum assured options available for the insured are Rs 1 lakh and Rs 2 lakh, for which the premium to be paid are Rs 5,000 and Rs 10,000 respectively.

The ‘Diabetes Safe’ policy covers diabetic patients even if the metabolic disorder is an existing one. The policy will provide cover for risks including diabetic retinopathy, nephropathy and diabetic foot ulcer. The minimum sum assured is Rs 50,000 at a premium of Rs 805 per annum for people in the 26-35 age group.

“Considering that there are around 35 million diabetics in India, we expect a good response for this product,” V Jagannathan, chairman and managing director, Star Health, said.

The company will soon launch two more products, one for HIV-affected people and the other in the category of ‘high-end’ policies.

The product for HIV-affected people would yield a lumpsum of Rs 50,000 when an HIV-affected turns into a fully blown AIDS carrier. The high-end policies will offer a minimum sum assured of Rs 10 lakh at a “low premium.”

In addition, the company will soon launch web-enabled services to facilitate NRIs to purchase policies online. The company inaugurated its 100th branch in Kolkata on Thursday and proposes to open 28 more in the current fiscal.

Source: Business Standard

LIC eyes more income from regular products

Life Insurance Corporation of India (LIC) has set a target of increasing the share of new business premium from traditional products to generate resources for investments in longer-term infrastructure projects and government bonds.

The public sector life insurer has drawn up a plan to increase the share of new business premium income from traditional insurance products to 35 per cent in 2007-08 from 20 per cent in 2006-07.

The popularity of unit-linked insurance plans (Ulips) unexpectedly pushed up the growth of LIC’s new premium income to over 100 per cent in 2006-07.

LIC’s needs for long-term funds cannot be met from Ulips, as individuals prefer to invest most of their funds in equities.

D K Mehrotra, managing director, LIC, said, “Ulips continue to be the flavour of the season because of their transparent features and high returns. The insurer also benefits because the risk premium is borne by the policyholder. However, Ulips don’t fulfil risk coverage and provide resources to invest in long-term infrastructure projects, social infrastructure, bonds and government securities. We will keep a conscious thrust towards conventional products.”

When asked what is the ratio they are aiming for, Mehrotra said, “We are aiming at a proper mix of Ulips:traditional at 65:35.”

In the month of May, LIC launched Jeevan Amrit Plan, an endowment plan with a policy term of 10 to 30 years. The plan is flexible where the premium payment term is limited to three, four or five years.

Also the premium amount comes down from the second year onwards. The bonus is paid based on the premium paid and not on the sum assured.

The first year premium income in 2006-07 from Ulips was Rs 31,556.80 crore, which constituted 79.81 per cent of the total new business premium.

For the same period, non-linked business was Rs 7,984.77 crore. “We plan to launch three-four products this year. The endowment plan that we plan to launch will offer flexibility in terms of premium payment and several other benefits.”

“The conventional product will be for the working class focussing on their liabilities. It will not be an annuity product. The product will be a simple conventional endowment plan with maturity or a death proceeds,” he said.

Endowment plans are life insurance plans which not only cover the individual’s life in case of an eventuality but also offer a maturity value at the end of the term.

In the event of the individual’s demise, his nominees receive the sum assured with accumulated profits on investments. In case the individual survives the tenure, he receives the sum assured and accumulated profits on investments.

Source: Business Standard

Oriental Insurance net profit up 75 pc

NEW DELHI: Oriental Insurance Company Ltd on Friday reported a 75 per cent jump in net profit to Rs 497.27 crore for 2006-07 from Rs 283.91 crore in the previous fiscal. "The growth in profit is the result of detariffing of prices on insurance products from January, rise in business in certain sectors and cut in losses on motor insurance," OIC Chairman and Managing Director M Ramadoss said here. The company also declared a dividend of 100 per cent as against 50 per cent in 2005-06. Gross premimum collections rose from Rs 3,609 crore to Rs 4,020 crore during this period. With surplus cash of about Rs 2,000 crore, the company plans to expand operations in the Middle-east countries, after doing a business of around Rs 90 crore in overseas markets including Dubai and Kuwait. The company, which had incurred a loss of Rs 235.48 crore in 2001-02, is making efforts to add new corporate clients to achieve a growth of over 10 per cent annually. Ramadoss said among new clients, the company gained a business of Rs 30 crore from Vedanta Group in 2006-07, and renewed contracts with NTPC for Rs 35 crore. It also provides insurance cover Jet Airways, Air Sahara and Kingfisher. The company did a business of Rs 150 crore last fiscal in rural areas, he said. "We are targeting to enter rural health insurance in a big way through our vast district-level network. For this, we are in talks with NGOs, micro-financial institutions and Self-Help Groups for distribution of insurance products." OIC also cut expenses on management by Rs 97 crore, and now complies with the Insurance Act provisions in this regard. It raised solvency ratio to 2.17 per cent as against 1.5 per cent directed by insurance regulator IRDA for covering risk against insurance claims.

Source: PTI