New India Assurance plans health insurance product

The New India Assurance Co Ltd will launch a new health insurance product with a thrust on the youth by this month-end.

"We have filed an application with the Insurance Regulatory and Development Authority (IRDA) and we hope to introduce our product by this month-end," B Chakrabarti, Company's Chairman and Managing Director, told reporters here.

The premia will be attractive with a view to attract the young age-group into the insurance fold, Chakrabarti said. There will be different premia charged for different age groups, he said, adding that it would be attractive for the young and middle-aged groups.

If a customer remains with the company from an young age (continuous customer), then the premium will be lower even when he is older than it would be a for a new old-age customer, Chakrabarti said.

Similarly, there will be differentiation based on incomes and zones as well. For example, premium rates charged for regions such as Bhopal will be lower than that charged for Mumbai, he said.

"We hope to secure IRDA approval and launch this product by this month-end," he said. On a possible tie-up with LIC for micro-insurance, Chakrabarti said, "we are in talks with LIC for the purpose."

According to him, the major challenge here was how to reach the masses at least distribution cost.

"We have to find a cost-effective way of doing this," he said, adding that a strong IT back-up would also be needed for the purpose.