Page 13 - The Insurance Times October 2024

ing with HIV/AIDS. Additionally, Star customer service and operational ex- Star Health Seeks Reinsur-
Health is committed to upskilling visu- cellence.
ally impaired individuals and hiring ance Collaborations in Af-
them as health insurance agents, allow- Karnataka Declares Den- rica and West Asia
ing them to work at their own pace and gue Outbreak an Epidemic Star Health and Allied Insurance is aim-
in familiar environments. At the policy's ing to establish partnerships with in-
launch, Srikanth Bolla, CEO of Bollant as Cases Top 25,000 surers from Africa and West Asia to ex-
Industries, praised the initiative, stat- The Karnataka government has offi- plore inward reinsurance opportunities
ing, "This policy is a message of empow- cially declared dengue an epidemic through GIFT City. Inward reinsurance
erment and equal opportunity." after the state reported over 25,000 refers to an arrangement where one
cases this year. In response, the State insurance company, the reinsurer, pro-
G Srinivasan Appointed as Health and Family Welfare Department vides coverage to another insurance
has issued stringent directives to build-
CEO of Galaxy Health In- ing owners, occupiers, and developers, company.
surance mandating measures to curb mosquito In March 2024, Star Health secured
approval from the International Finan-
Galaxy Health Insurance, promoted breeding. Failure to comply with these cial Services Centre Authority (IFSCA) to
directives will result in fines.
jointly by the TVS Group and V set up an IFSC International Office at
Jagannathan, founder of Star Health & The state has seen 12 dengue-related GIFT City. Anand Roy, Managing Direc-
Allied Insurance, has named G deaths, with Bengaluru reporting the tor of Star Health, remarked, "Many
Srinivasan as its Managing Director and highest number of cases (11,590) and customers travel to India for treat-
CEO. Srinivasan, who previously served three fatalities. Other districts, includ- ment, providing us with the opportunity
as Chairman and Managing Director of ing Mandya, Hassan, Mysuru, and to act as both a reinsurer and concierge
New India Assurance, brings four de- Kalaburagi, have also reported hun-
service provider for claim processing."
cades of experience to his new role. dreds of cases. In July alone, Bengaluru
Galaxy Health received its insurance recorded 5,000 new cases, though that Lower GST on Health In-
license from the IRDAI in March and is number decreased to 3,000 in August. surance Could Increase
set to begin operations soon. The The Karnataka Epidemic Diseases
company's board includes cardiologist Regulations, 2020, have been Penetration, Says DFS
Sai Satish as Chairman and Sudarshan amended to include new rules aimed The Department of Financial Services
Venu, Managing Director of TVS Mo- at controlling the spread of dengue. (DFS) has argued that reducing the
tor Company, as Director. Srinivasan's Fines for non-compliance vary by area, Goods and Services Tax (GST) on health
leadership is expected to guide the with penalties ranging from Rs. 200 to insurance would lower premiums,
company's entry into the health insur- Rs. 1,000 depending on the location thereby encouraging greater coverage
ance market with a strong focus on and type of establishment. and improving insurance penetration
in India. DFS officials believe that a
Climate Change Likely to Drive Up Health Insurance temporary dip in GST revenue would
be offset by the expansion of the in-
Premiums sured population, aligning with the

Health insurance premiums in India are projected to rise due to the increas- government's "Insurance for All" vision
ing frequency of heatwaves, flooding, and air pollution, all of which are for 2047.
linked to a variety of health issues. In July, a UN report noted that heatwaves Union Finance Minister Nirmala
had already claimed over 100 lives and left more than 40,000 people ill this Sitharaman recently defended the GST
year. Pollution, particularly air quality, remains a significant concern, with on medical insurance, stating that such
studies indicating that polluted air kills approximately 33,000 people annu- taxes existed even before GST's imple-
ally in India, including 464 children under the age of five every day. mentation. Her remarks came after
demands in the Rajya Sabha to elimi-
Hiten Kothari, Chief Underwriting Officer at HDFC Ergo General Insurance,
confirmed that respiratory illnesses, vector-borne diseases, and gastrointes- nate the 18% GST on medical insur-
tinal conditions have already contributed to a 10-15% rise in claims. Kothari ance. Road Transport Minister Nitin
Gadkari has also urged Sitharaman to
warned that if claims continue to rise, insurers will be forced to increase remove the GST on both life and health
premiums in proportion, meaning a 10% rise in claims could result in a 10% insurance premiums, emphasizing that
premium hike.
the tax hinders the sector's growth.
12 October 2024 The Insurance Times