Apollo Hospitals Group and DKV AG, Europe’s largest private health insurer together with a Munich Re Group company, launched the second standalone health insurance company in the country last month.

The products will be rolled out by the middle of September by the joint venture. The Apollo Hospitals Group will hold 74 per cent stake while the remaining 26 per cent will be held by the DKV AG.

At a press conference here today Ms Shobana Kamineni, Director, Apollo Hospitals and Apollo DKV Health Insurance, said “the partners have invested Rs 108 crore in proportion to their shareholding in the venture, and the company hopes to offer cashless products and services in over 4,000 hospitals across the country. The company expects to have a presence in over 100 cities across the country by 2010.

“Apollo DKV will, initially cover a comprehensive range of products covering critical illness cover, personal accident covers, overseas travel and health cover and in-patient hospitalization cover. The company would start with six regional offices in major metros and expand to 25 category A cities by the end of the second year. The categories would include policies for both individuals and groups,” Dr Jochen Messemer, Director, Apollo DKV Health Insurance, said.

The products will not only give true value for money but also give much more built in value added services and the pricing will be on par with other insurance players Ms Kamineni, said.

“The need of the hour is to have products to cater to the needs of the out-patients, Dr Messemer said and added that the company was also looking at introducing products suited for outpatients. The company is expected to launch this product in the second phase,” he said as the crucial aspect for this to materialize is to have a reliable pricing mechanism and tie-up with hospitals and this would take some time to work out.

The company is looking at customized products for various market segments and locations and also long-term care plans in the nearest future.

Apollo DKV has envisaged a market share of 10-12 per cent in the next five to seven years and expects to cover one million lives in the next two to three years. The company also expects its revenues to touch close to €300 million (Rs 1,722.9 crore) in this time period.