Page 13 - The Insurance Times May 2025

testing demands at appellate forums He added that there will be no expen- HCL founder Shiv Nadar had recently
to avoid large financial outgoes impact- diture cap for ESIC beneficiaries under transferred significant ownership of
ing their balance sheets. Care Health the initiative, unlike the Rs 5 lakh per Vama Sundari to his daughter, Roshni
Insurance plans to challenge the order family per year cap for AB-PMJAY par- Nadar Malhotra, consolidating her
in line with standard industry practice. ticipants. control. Prudential CEO Anil Wadhwani
said, "Today, we have a significant
Additionally, 15 new districts in Uttar
ESIC Beneficiaries to Ac- Pradesh have been brought under the presence with life insurance and asset
cess Medical Care at ESI scheme, bringing the total to 689 management businesses providing a
notified districts across India. The ESI comprehensive offering of insurance
Ayushman Bharat Hospi- scheme provides social security ben- and wealth products."

tals efits to organised sector employees, Vama Executive Director Shikhar
covering sickness, maternity, disability, Malhotra noted, "Through this collabo-
Around 40 million Employee State In-
and death. ration, we aim to advance our common
surance Corporation (ESIC) beneficia-
ries and their families-an estimated mission to enhance access to quality
150 million people-will soon be able to Prudential, HCL Group health insurance and drive greater
penetration across the country." The
avail medical services at over 30,000 Promoters to Launch
hospitals empanelled under the venture will be led by Amar Joshi, sub-
Ayushman Bharat-Pradhan Mantri Jan Standalone Health Insur- ject to regulatory approval.
Arogya Yojana (AB-PMJAY), Labour ance Venture Prudential already has a two-decade
Minister Mansukh Mandaviya an- partnership with ICICI Bank in life in-
Prudential Group Holdings, a UK-based
nounced. subsidiary of Prudential, has an- surance and asset management.
"The government is integrating the nounced a joint venture with Vama
ESIC scheme meant for organised work- Sundari Investments, a promoter en- Galaxy Health Insurance
ers with AB-PMJAY to offer compre- tity of HCL Group, to establish a Aims for Rs 200 Crore Pre-
hensive, cashless medical care to over standalone health insurance company
144 million beneficiaries and expedite in India. Under the arrangement, Pru- mium in FY26
the implementation of the ESIC dential will hold a 70% stake, while Galaxy Health Insurance Company Ltd
scheme in new areas," the Minister Vama Sundari will own the remaining has set a target of achieving Rs 200
said. 30%. crore in premium income for the cur-
rent financial year, Managing Director
and CEO G Srinivasan said. The com-
Three-Fourths of Indians Hold Health Insurance pany, which received IRDAI approval

Cover Below Rs 10 Lakh: Survey last year, currently operates through
60 offices in southern India and has
A recent study by Policybazaar has found that at least 75% of health insur-
6,000 agents.
ance buyers in India have a coverage of Rs 10 lakh or less, reflecting a sig-
nificant underestimation of actual healthcare costs. The problem is most Backed by industrialists Venu
pronounced in South India, where 66% of policyholders have coverage of Rs Srinivasan and V Jagannathan, Galaxy
5 lakh or less. Health is seeking to expand its foot-
print aggressively. "Last year the pre-
The "How India Buys Insurance 2.0" report also revealed that nearly 48% mium was Rs 17 crore. This year we
of policyholders opt for coverage of Rs 5 lakh or less. Traditional investments
are targeting Rs 200 crore. We still
like gold, fixed deposits, and real estate still dominate Indians' portfolios,
feel the insurance coverage ratio is less
although health insurance is increasingly seen as a critical financial tool.
and we want to provide the last mile
However, only 28.3% of respondents ranked health insurance above equi- connectivity," Srinivasan told PTI.
ties, mutual funds, and government bonds. Alarmingly, 47.6% of Indians He also said the company plans to in-
remain unaware of the benefits of term insurance.
crease the number of offices to 100.
The findings highlight the pressing need to enhance awareness and encour- Over the next two to three years, Gal-
age consumers to opt for higher health insurance coverage to protect axy aims to transform into an all-India
against rising medical inflation. insurer.

The Insurance Times May 2025 13