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"SME companies are less demanding in coverage and are willing to accept restrictions such as capping on room rent or on the coverage for specific diseases. This helps them save premium. But large corporates want full coverage and they are able to dictate terms because they pay huge premiums. It becomes difficult for insurers to offer rates they ask for,'' Subrahmanyan said.
During the calendar year 2014, total health premium was about Rs 160 crore, of which group plans accounted for nearly 90 per cent.
Motor insurance accounts for the largest share of Bharti Axa GI's total business with 70 per cent, followed by health, personal accident and commercial lines, which have roughly the same share.
Today, the company, entered travel insurance with the launch of SmartTraveller, a comprehensive travel insurance plan.
"The travel insurance segment is about Rs 450-500 crore and is growing at an annual rate of 20-25 per cent. Earlier the preference was for bundled products, purchased along with tickets. But today customers do shop around for travel insurance policies and compare prices and features before buying one,'' Subrahmanyan said.
SmartTraveller offers three options. A single trip policy for an individual traveller and his or her family. A multi-trip policy for companies for their employees travelling abroad and a student international policy for those going abroad for higher studies.
Individual and family plans cover travel exigencies like medical emergencies, loss of travel documents (passport, tickets, etc), loss of checked-in baggage, compassionate visit in case of medical emergency, financial emergency, daily allowance if hospitalisation is needed, among others.
Student international travel insurance plans in addition cover sponsor protection and reimbursement of the tuition fees due to study interruption. For additional premium students can get cover for treatment of mental and nervous disorders including alcohol and drug dependency.
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