New India introduces different rates for 3 zones in India

For motor insurance India used to be divided into 2 zones.
But for health insurance New India has divided India into 3 zones;
Zone 1 Mumbai
Zone 2 Delhi/Bangalore
Zone 3 Rest of India
The question arises ;
As the difference between rates for 3 zones is very small,is it worthwhile to have 3 rates?
A person from zone 3 wishes to go to Delhi or Mumbai for treatment because facilities are not available in his home town in zone 3.Will he be permitted to undergo treatment or not?
A person from zone 3 goes to Mumbai and claims I am visiting Mumbai-will he be permitted treatment for the disease which he could have got treated in his home town in zone 3?

Will 3 rates result in customer satisfaction or dissatisfaction?
Let us wait and watch.

only 2 health insurance co's start working in India in 2 and a half year

India is a large country .IRDA has special rules for setting up of health insurance co's by putting in equity of Rs. 25 crores vs Rs. 100 crores required for setting up of a normal non life insurance co.

In 2 and a half years time only 2 health insurance co's started working in India.

What can be the reasons?

1 Shortage of funds -No.I do not believe .In our country even movies are being produced with investment of more than Rs. 25 crores
2 Unattractive as a business-With population of 110 crores,every business is boomimg,GDP growth @ 9.3% (I do not believe this)
3.Rs.25 crores is too small asum for setting up an all India co and high real estate cost is affecting .Yes this is the possible reason.

Let us think on the following lines;
Instead of India as the territory why not consider state as the territory and IRDA considers issuing of licence to a co ,which will operate only in 1 state.
Lower equity of Rs. 10 crores will do.
easy to start the co as it has to open offices only in 1 state
better control on costs and lower cost of selling
Many of our banks in private sector stated at district level and then grew at the state level and are operating not only in India but even in foreign.level

Comments are invited

Do you know instance where renewal of health insurance for a senior citizen is refused

Do you know instance where renewal of health insurance for a senior citizen is refused? If yes let us know .Whenever this point comes up the insurance co says all renewals are being done and in no case it is being refused.
Your views will help us in taking up this issue.

Co pay concept comes to India (health insurance)

For a long time we have been habitual of near to 100% cost of hospitalization being paid by the insurance co.

National Varishta Bima( senior citizens)has introduced 10% as co pay ,which means 10% will be paid by the insured and rest by Insurance co.Star Health has this fugure at 30 %(with medical examination ) and 50% (without medical examination ).

This is a big change for all of us.

Insurance co's feel this will result in control on the costs as insured will be conscious of the costs.

Let us see how other co's adopt this concept.

Is helicopter medical evacuation covered under Health Insurance Policy ?

Business Standard (Sep 13, 2007) has carried the following photo;

None of the health insurance policy issued to us covers the cost of helicopter medical evacuation.
It is surprising that overseas travel policy issued by various co’s carries sum assured of USD 5,00,000 ( Rs 2 crores+) and in emergency helicopter medical evacuation is also covered/ paid for.
Within India Rs 10 lakhs is the max sum assured possible with Cholamandalam.New India is also increasing the sum assured to Rs 10 lakh and in near future plans to raise it to Rs 25 lakhs.
We do hope Cholamandam & New India will consider including helicopter medical evacuation as part of the policy (Sum assured Rs 10 lakhs).
Your comments are invited so that we can convey our thoughts to the Insurance Co’s.

Diseases knock billions off India Income

TOI (Sep. 13, 2007) has carried an interesting news item according to which
“In 2005 alone, the estimated loss to our national income from diseases like heart

ailments, strokes and diabetes, was a staggering $ 9 billions (Rs. 37000 crores)

Over next 10 yrs, India may lose more than $ 200 billions (Rs. 8, 00,000 crores)
due to employee’s sickness. Some firms are already losing about 14% of

their annual working days -51 days /year.

Very interesting to note that in India health insurance premium collected

during 2006-07 was Rs 3300 crores,which means per capita health insurance

premium spend is Rs. 30 for a year.

PM has announced on August 15, 2007 that Rs 2000 crores will be spent by

the Government of India for health insurance of poor people.
How it will be spent? Will it be subsidy to be given to 4 PSU’s or to all

the insurance co’s offering health insurance?
Till this time no indications are available.

It is in the interest of co’s to go in for Group Health Insurance so that health

of the employees is taken care off.

Your comments are invited.

Feature or Bug?

Yesterday's McPaper characterized one aspect of the ObamaTax pricing regime as the "Family Glitch:"

"Congress defined "affordable" as 9.5% or less of an employee's household income ... the "error" was that it only applies to the employee — and not his or her family. So, if an employer offers a woman affordable insurance, but doesn't provide it for her family, they cannot get subsidized help through the state health exchanges."

Why is this both an "error" and a "glitch?" And why presume in the first place that it was not, in fact, intentional? After all, even the folks in Capital City had to foreseen how many employers would be dumping shifting their employees (and retirees) onto the Exchanges in an effort to gain some control over the financial hurdles being placed before them.

Our Elected Betters© wouldn't have done something stupid, right?

Right?