LIC health insurance products may hit market next month

Health insurance products from state-owned Life Insurance Corporation of India (LIC) are expected to hit the market by December-end, providing millions of policy holders access to health insurance at their door- step.

"We are awaiting clearance from the Insurance Regulatory and Development Authority (IRDA), and hope to launch health insurance products by the third week of December," a senior LIC official, associated with company's health division, told PTI.

He said initially the health insurance operations would be a part of the life insurance business.

The company expects to provide cover to at least one crore families within a year of launch of these products. LIC is also planning to launch a special senior citizens health insurance policy in due course, a source said.

The source said the company hopes to mop up around Rs 5,000 crore by selling its unit-linked health insurance policy in the first year.

The company's prospects in health insurance business may brighten once the premium rates are liberalised by the IRDA early next year, as the group health insurance premium rates would go up.

"Presently, mediclaim settlement rates are in the range of 140-150 per cent, which would come down after the detariffing of premium shortly," IRDA Chairman C S Rao said on the sidelines of a conference on health insurance organised by FICCI.