State keen to insure unorganised workers

The West Bengal government is keen to rope in private insurers to bring unorganised workers in the fold of health insurance.

“We had a discussion with West Bengal finance minister on extending insurance services for people in the unorganized sector. We need to learn about the sector, so that is a commercially viable activity,” said Damien Marmion, Chief Executive officer, Max Bupa.

The company plans to submit a plan on insurance for the unorganized sector in a year's time.

This apart, the private health insurer is keen to provide health insurance under government-sponsored healthcare scheme, Rashtriya Swasthya Bima Yojana (RSBY).

At present it is in talks with three state government for providing health insurance under RSBY.

“We have some low value products suited for RSBY. We are bidding for the scheme in three states. Over the next few months we want to study more about the unorganised market and design appropriate products,” said Marmion.

RSBY is a government scheme for the Below Poverty Line (BPL) families in the unorganized sector. The objective of RSBY is to provide insurance cover to BPL households from major health shocks that involve hospitalization.

This apart, Max Bupa is in talks with regional rural banks, co-operative banks and post offices to strengthen its distribution network and reach out to the rural population.

“Bancassurance is a good model for distribution of insurance products. Regional and co-operative banks have the kind of reach and expertise in this area so we want to tap them,” said Neeraj Basur, chief financial officer, Max Bupa.

The company currently distributes its products through corporate agents, telemarketing, direct sales channel and through internet. Initially, the company plans to tie up with regional and co-operative banks in Maharashtra.

According to IRDA (Insurance Regulatory Development Authority) norms a commercial bank is permitted to distribute products of only one life and non-life companies at present. This was a big stumbling block for standalone health insurance companies, said

“We are in talks with IRDA to allow banks to sell products of standalone health insurance companies alongside those of the life and non-life companies. The industry is in talks on this issue and something could emerge soon,” said Marmion.