Diabetic patients would soon be able to avail of health insurance even if the metabolic disorder is a pre-existing one.
Star Health and Allied Insurance Company Limited, India's only standalone health insurance company, plans to launch a health cover targeting the diabetics in the country.
It is estimated that there are about 35 million diabetic patients in India and their number is rising steeply. At present, standard health insurance policies cover diabetes-related costs as long as it is not pre-existing.
This means that a person's diabetes-related expenses will be reimbursed by an insurance company only if the person was struck by the disease after buying a policy.
Star Health plans to introduce a product, which will cover expenses for diabetes-related ailments, like retinopathy, nephropathy and neuropathy, even if these are pre-existing, V Jagannathan, managing director and chief executive of Star Health, said. The company is in the process of filing the product with the Insurance Regulatory and Development Authority of India.
Meanwhile, Star Health also plans to launch a product targeting non-resident Indians. This product would cover health expenses of their families in India. Insurance companies provide such products in India. Star Health, however, plans to woo the NRI population by sending representatives abroad for marketing its products.
According to the December 2001 data of the ministry of overseas Indian affairs, the estimated size of the Indian community abroad is 1.9 lakh in Australia, 8.51 lakh in Canada, 16.65 lakh in Malaysia, 15 lakh in Saudi Arabia, 10 lakh in South Africa, 12 lakh in the UK and about 16.78 lakh in the US.
Star Health, which started its operations in May this year, has nine retail products in the market and has issued over 15,000 policies till date. The total premium collected till August 31, 2006, is approximately Rs 2 crore (Rs 20 million).
The ratio of individual to group business is 80:20. "We expect to break even and register profits in 2007-08," Jagannathan said. The company has registered a claims ratio of less than 5 per cent so far.
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