Page 23 - Life Insurance Today May 2016

countrywide access to consumers can result in increased appliances, Medicines, drugs, Diagnostic Material & X-

market penetration and premium income for insurers. Ray, Dialysis, Chemotherapy, Radiotherapy, cost of

pacemaker, artificial limbs and cost of organs and

For customers bancassurance serves as a single window similar expenses.

for meeting their various insurance needs. All the PSU o Ambulance charges not exceeding Rs 1000/- per policy
Insurers had entered into tie-ups with various banks for
period.
selling of products through the branches. Apart from their
standard policies, banks are also selling co-branded o Out of Pocket expenses (lump sum amount of
Rs.1000/- based on the declaration) to any of the
products.
attending parents in case of hospitalization of children

These are essentially personal line health or combination below the age of 12 years.

of Health and PA designed for the depositors and account o Cost of Health-check up is allowed at the rate of 1%

holders thus promoting mass marketing of insurance of the sum insured after the completion of three

products. Along with the agency force bancassurance can continuous claim free years under this policy.

be utilized effectively to increase market share especially o Pre existing disease to be covered after three
in personal life insurance (for this today almost 60% of
consecutive years of insurance provided, there was no

newly recruited agents are simply vanishing in the very hospitalization for pre-existing ailment during such

second year of their recruitment). three years of insurance.

So for every common man as a reader of this article is As per various reports published, health insurance has
hereby informed that whenever you want a very effective, already poised to become the second largest portfolio next
cost saving, Medical Insurance you need to avail only these to Motor Portfolio. Along with non life insurance
Co-branded products through Banks only - don't go for companies, health insurance policies are being marketed
standard Mediclaim Policies through individual agent by Life insurance companies and Health insurance
(Where the scope of cover is extremely limited compared companies making the competition more intense.
to these co branded products) as the sections on Co- Presently the market penetration remains inadequate and
branded product contains profiles of the policies which the claims ratio high.
have been designed specially to be sold to the account
holders and depositors of the banks with which Indian This is due to the number of lives insured being low and
Insurance Companies has entered into tie-ups to sell Govt. the large number of claims being reported. Several
(Directed Products initiated by our Respected Prime complaints in respect of services are a hindrance to the
Minister, Mr. N.D, Modi) -issued through by their same marketing of health insurance policies. A fact which should
branches - For example - the names of Bank of Baroda, not be ignored is that even after a passage of three
Bank of India, State Bank of Mysore, may be noted who decades the largest number of grievances stem from
are selling these co-branded products of PSU Insurers very claims lodged under Mediclaim Policies. Efforts in
effectively, at least for the last one decade. improving the services have to be made to market the
health insurance as a mass product.
And these Policies include all the following benefits those
are in dire need of the modern Indian Civil Life: The starting point for such initiatives should be educating
customers of our products as awareness about health
Room, Boarding expenses as provided by the insurance policies even among the educated class, is confined
Hospital / Nursing Home. to Mediclaim Policy only. Prudent underwriting assisted by
the agents / advisors (providing the correct information for
o Nursing Expenses. efficient underwriting) is a must in every case - so the agents
/ advisors plays a vital role, given the fact that the moral
o Surgeon, Anesthetist, Medical Practitioner, hazard associated with health insurance is high. 
Consultants, Specialists fees.

o Anesthesia, Blood, Oxygen, OT charges, Surgical

Whether I'm at the hangar or at the airport or on an airplane, I get respect. And that's the best part of my day.

Life Insurance Today May 2016 23