Health plans presents a promising view for insurance firms

Recently, three companies including ICICI Prudential Life, Birla Sun Life and Aviva Life have launched health insurance products catering to specific illness. Customers can choose the type of cover, either for heart or cancer, or have the option to purchase both. “Health insurance forms a small part of our premium income as of now, “said Puneet Nanda, executive director, ICICI Prudential Life Insurance. “We expect growth rate for protection to be higher and are focusing on growing the overall protection segment. “ Health insurance makes up around 25% of the general insurance industry while it is less than 5% of the life insurance industry. Heart ailments and cancer together account for over 50% of health problems among Indians, said Nanda. Aviva’s Heart Care product provides coverage against 19 mild, moderate and severe cardiovascular conditions, and procedures and allows lump sum payout irrespective of the treatment cost. “Indians are prone to heart ailments due to multiple factors including genetics, unhealthy diet, sedentary lifestyle, stress etc, making it the Cardio Vascular Disease capital of the world,” Aviva stated in a report. “People are buying products for illnesses that are discomforting to them,” said Sanjay Datta, head of underwriting, ICICI Lombard General Insurance. “There are products covering several critical illnesses for years but now companies are launching single critical illness products as well.“ While cost of treating a heart attack can cost between Rs 2.8 Lakh and Rs 10 lakhs, the expenses for a kidney transplant can be Rs 4.2 lakhs Rs 6.9 lakhs, states a Birla Sun Life report.