Health insurance norms on cards

The Insurance Regulatory and Development Authority (Irda) today said it planned to come out with separate guidelines for the health insurance players soon, aimed at comprehensive medical insurance coverage and redressal of consumer grievances.

"To handle a plethora of issues relating to health insurance with focused attention, a separate health unit has been set up in the authority, specialised resources have been inducted to strengthen the role of Irda in the development and better conduct of health insurance business," Irda Chairman C S Rao said at a conference here organised by Ficci.

He said to increase the penetration of health insurance in the country, Irda had also recommended to the government to bring down capital requirements for standalone health insurance companies to Rs 50 crore from Rs 100 crore earlier.

However, he said, it would require amendments in the Insurance Bill, pending for Parliamentary approval.

Referring to problems faced by senior citizens in getting health insurance, Rao said, "A committee constituted for this purpose has submitted its report. We are in the process of examining and taking further action on the recommendations of the committee."

The regulator has already taken steps towards "standardising the definition of pre-existing diseases, which are now reflected in the health insurance products," he said.

The General Insurance Council, consisting of all-non life insurers, is also working to build a consensus on the issue, the Irda chairman said. Expressing concerns over the slow pace of the industry's growth, he said only about 25 million out of 1.1 billion population have insurance cover at present.

The premium from health insurance products in non-life companies has grown from Rs 675 crore in 2001-02 to Rs 3,200 crore in 2006-07, while it has the potential to grow up to Rs 30,000 crore by 2015, he said.

Speaking on the occasion, Planning Commission Member Secretary R R Shah said the public expenditure in health sector would go up to 2 per cent of the GDP as against one per cent at present.

The government is expected to raise budgetary support to Rs 1,36,000 crore for health sector during the 11th five year plan ( 2007-12), he said.

Shah also said 60 new medical colleges and 226 nursing colleges would be set up in the next five years apart from upgrading the 600 district level hospitals across the country.