LIC INTRODUCES HEALTH INSURANCE IN FEB,2008
Life Insurance Corporation (LIC) of India, has got the approval from the regulator Insurance Regulatory Development Authority (IRDA) for its health insurance policy ‘LIC Health Plus’ which would be launched by February,2008.The product was actually to be launched in last week of December,2007, but has been postponed partly due to the delay in regulatory approval.
Unlike the cashless transaction model followed by competitors, LIC’s product would be based on the lines of floater plan, which would give the policyholder the option to receive lumpsum, which means claims claims could be made for even treatment undergone at home. The additional feature would be domiciliary claim, where a patient taking treatment at home will be reimbursed as the person submits the complete bills.The sources said that unlike the current mediclaim products offered by the general insurance companies that cover the insured hospitalisation expenses and are annual in nature, LIC would pay the insured a predetermained lumpsum amount, depending upon his premium payment. The company has claimed that the present cashless model is not in favour of the customer as many hospitals were not accepting the facility.Moreover, in many cases hospitals are charging more if a patient comes with an insurance cover that offers cashless treatment.
LIC Executive Director, D.D.Singh said that Insurance Regulatory Development Authority (IRDA) has accepted to launch health insurance products.This long term comprehensive health insurance products would be launched in the second week of February,2008.LIC is targeting to provide health cover to close to 1 crore families in the first year of the launch of the product and expects over Rs 5,000 crore of revenues. LIC’s product will also be a long-term product of over 10 years. The product is excepted to be marketed in a big way through all distribution channels of LIC, including its over 10 lakh agents.
