HEALTH INSURANCE TO GROW RAPIDLY IN INDIA, SAYS IRDA BOSS

Health insurance is likely to be the second-largest generator of premiums in India, after motor insurance, within just a few years, according to CS Rao, chairman of the Insurance Regulatory & Development Authority (IRDA). Speaking at the CII Health Insurance Summit in Mumbai on Friday. Mr Rao said that the removal on tariffs in other sectors of insurance had prevented cross-subsidy of the health sector, thus making it more viable for standalone health insurance companies. Before the removal of tariffs from fire insurance, companies often had to offer discounts on health cover in order to gain the fire insurance business, Mr Rao said. He also noted that in the past five years the level of premiums generated had increased from Rp6.75bn ($171m) to Rp32bn. Mr Rao said that the regulator was in favour of health insurance being regulated as a third sector. “At present, there is no definition of a health insurance company and health insurers are covered by the definition of non-life insurance. We have suggested that there should be a definition of a separate health insurance company”, he said. Mr Rao also noted that, although the health insurance sector had great potential for insurers, it was also the area where IRDA received the most complaints. Mr Rao observed that, considering the large number of complaints received from senior citizens with regard to non-availability and high cost of health insurance, IRDA had created a committee to examine the issues faced by senior citizens when buying health insurance.