New India Assurance, the country’s largest non-life insurer, has revised the premium rates of its health insurance policy named Mediclaim 2012 by an average 20 per cent. The revised product was launched in April and is called New India Mediclaim Policy. The new policy has done away with differential premium rates. In its earlier version, the premium rates were higher in metros that have high medical/hospitalisation cost.
A senior official of the insurer confirmed to FC, “Yes, we have revised the rates for Mediclaim 2012. The average increase in premium rates is about 20 per cent. We have also made certain changes in the features in the new policy such as lowering the waiting period for pre-existing diseases besides adding some riders.”
“We felt keeping the pricing uniform irrespective of geographical locations would enable people to take treatment in any hospital in the country. The earlier practice of pricing a cover depending on zones was restrictive as people then had to take treatment only in their own locations (zones).” added the official.
“If a person agrees for a co-payment of 20 per cent, then the premium would be lowered. We have introduced maternity benefit after two years waiting period and made several other changes,” the official said.
IPO in 6-8 months
While announcing the annual results, G Srinivasan, chairman and managing director, New India Assurance, said the insurer has appointed investment bank ers and expects to come with an IPO in the next 6-8 months. New India Assurance registered a 22 per cent rise in net profit at Rs 1,008 crore in 2016-17. It recorded a global premium of Rs 22, 279 crore with a growth of 21.27 per cent. The domestic premium was Rs 19,115 crore with a growth of 26 per cent. The insurer was able to cut its operating losses that stood at Rs 3100 crore in 2016-17 compared to Rs 3500 crore in 2015-16. “We hope to make operating profits in the next 3-4 years,” added Srinivasan.
The networth, including the fair value of investment, has increased to Rs 34,716 crore. The market value of investments stood at Rs 53,009 crore. The asset base at the end of the year jumped to Rs 69,713 crore.
Govt schemes are loss making: While the insurer did a premium of Rs 1,046 crore in the government’s Pradhan Mantri Fasal Bima Yojana which has increased to Rs 1,500 crore this year, the scheme has been loss making for the insurer.
