India’s largest life insurance services provider Life Insurance Corporation (LIC) is set enter the health insurance space in about two months as it is awaiting a nod from the IRDA.

Thomas Mathew told reporters here today. “Once the company receives approval from the regulator, LIC will formally announce its entry,” Mathew said, adding the formal launch will take about two months.

“The company will soon enter the health insurance sector and has submitted to the Insurance regulator (IRDA) newly- designed quality products in this regard,” LIC Managing Director. The company has formed a new subsidiary for taking care of the proposed business, he said after donating cochlear implants of four hearing-disabled children as part of the company’s corporate social responsibility.

Referring to LICs growth in view of the entry of number of private players, he said: “LIC is number one in the world in terms of total number of policy holders, 22 crore at present, which is more than the population of many countries.” The company’s total market share in life insurance sector is above 75 per cent, while 15 private players own the remaining 25 per cent. Of these nine private firms have just one per cent share, he said.

Tamil Nadu is the first to implement the scheme -Benefits up to Rs 2 lakh once in 4 years: Special State news release

CHENNAI: Chief Minister M. Karunanidhi on Sunday announced that the State Government would implement a health insurance scheme for its employees to provide medical benefits up to Rs 2 lakh once in four years.

Addressing the Silver Jubilee Conference of the Tamil Nadu Government Employees’ Union (TNGEU), here, he said the scheme would enable the employees to avail themselves of treatment in government and private hospitals. Both the Government and the employees would contribute towards the premium and the scheme would be functional with the help of insurance companies, he added.

There was no such scheme in operation in the country now and Tamil Nadu would be the first State to implement such a scheme. Mr. Karunanidhi said the details of the scheme would be announced shortly.He said that the earlier All India Anna Dravida Munnetra Kazhagam government, which recruited temporary staff to make sure that the government employees’ strike failed, later dismissed them abruptly.

All the 11,356 temporary employees had been taken back in various government departments and State-owned undertakings, he said, adding that one of the demands of the Union was to make these employees permanent. The Government too accepted this and they were absorbed after the Public Service Commission conducted a special test for them. The High Court had favored the

Government when some people went to court against appointing these people on a permanent basis, he said. Referring to the charter of demands submitted by TNGEU, he said “Your demands will be met after studying them in detail. These demands need not be debated. It can be decided after discussing with the officials concerned and they would be announced one by one.”

Recognition for unions

On the demand related to granting recognition for two employees’ unions, he said the Government had called for particulars from the organizations concerned and orders would be issued after considering them.

Mr. Karunanidhi advised the employees union not to lose its fighting character. This did not mean that the employees had to oppose everything. They had to take a considered view of a problem and decide on a course of action.

He was saying this because he had been on the forefront of many agitations and was aware of the power of organized unions. Only when the trade unions were strong and vibrant would the hard-earned freedom that all enjoyed be safe and secure, he said.

Working journalists can avail the group medi-claim policy under Health Insurance Scheme being offered by United India Insurance company. Policy The policy will cover to an extent of Rs. one lakh per annum and the total premium is Rs. 1949. Of this the working journalists have to remit Rs. 771 towards their share and the balance will be borne by the State Government. Forms

The prescribed application forms are made available with the District Public Relations Officers in the State. Those working journalists who are interested to avail the medi-claim policy should submit the application forms on or before August 6, 2007 along with a crossed demand draft drawn in favour of the Accounts Officer, Information and Public Relations Department.

Your health insurance premium may soon dependent on the place you live, your age and income. New India Assurance — the country’s largest general insurance player — has submitted a new medical insurance product — where the premium will be determined by age, income and geography—for the Insurance Regulatory and Development Authority’s approval. “We want to encourage younger people to start buying health insurance, so there will be discounts for people in the younger age bracket. People, who continue with the policy till their old age, will have an advantage in pricing, compared to those who enter a new policy at an old age,” said Bimalendu Chakrabarti, CMD, New India Assurance. There are also likely to be incentives for people to hit the gym. Chakrabarti added that customers with good health habits are likely to get discounts, provided the insurance regulator approves the product. The new product will also reintroduce sub-limits that will ensure that hospitals and customers do not misuse insurance. The product is expected to hit the market by September 1st.

Health insurance premium may vary from one metropolitan city to another

Can the health insurance premium paid by a Mumbai resident be more than that paid by a Chennai resident, on the strength of the geographical location, other things being equal? A report on `Innovations in health insurance policies’ by the Insurance Regulatory and Development Authority (IRDA), recently submitted to the Finance Ministry as well as insurance companies, says it can.

Geography, will certainly be a key instrument for pricing products in the near future says IRDA. According to the report, geography would be one of the key differentiator for prices of products since healthcare costs vary in different parts of the country. “The healthcare costs in Chennai, for example, are lesser than the costs incurred in Mumbai. This should be used as a differentiator for prices for products being offered in various parts of the country,” said the report. Thus, there could be restrictions in terms of where the treatment can be availed.

Key suggestions

The other key recommendations made by the regulator include the system of a `pool’ for insuring pre-existing ailments and introduction of the system of co-insurance, co-payments and deductibles in pricing.

A senior official at IRDA said the report was meant to serve as a guideline for insurance companies currently designing new health insurance products. “The aim is make health insurance more viable for the customer as well as the company,” he said.

The report has also suggested the introduction of health insurance policies which allow co-insurance (customer has to pay a percentage of claimed amount), co-payment (customer has to pay a fixed amount), deductibles and medical savings products especially for customers who think they might not fall ill but still wish to be covered.

`Pool’ concept The IRDA constituted committee has also strongly recommended the concept of a `pool’, which will be maintained by the regulator for covering pre-existing illnesses like congenital ailments and conditions like AIDS.

The funding of the pool would be from the contributions of insurance companies, voluntary contributions from corporates, grants from Central and State governments and aid from international bodies such as World Bank and WHO.