Dengue Care is a good entry point to health insurance: Apollo Munich Healthcare CEO

There seems to be a common thread running on the work and leisure front for Antony Jacob, CEO of Apollo Munich Health Insurance. Golf, which keeps Jacob engaged during the weekends, saw a milkman's son Shubham Jaglan win two international titles in as many weeks. While the game of golf saw a 10-year-old from humble background win a sport expensive to pursue, Jacob launched a health insurance product that is simple and inexpensive for the masses.

Dengue Care is the only product in the country, which specifically covers a contagious disease. Khyati Dharamsi tries to gauge the thought process that led to the launch of this instant insurance cover, which costs Rs 1.22 per day for a Rs 50,000 health cover with a Rs 10,000 outpatient coverage.

Why a special cover for dengue among other contagious diseases?
We all pray for the monsoons. All of us know it is good for the economy. But monsoon also brings with it the problem of mosquito breeding, causing strong viral disease. There were 40,000-50,000 dengue cases detected in the last fiscal. Dengue could lead to loss of life. The diagnosis and treatment cost too is high. One would need Rs 5,000-7,000 purely for diagnosis and a total of Rs 35,000-40,000 would be needed for the overall treatment.

How many dengue related claims did the company service last year?
Last financial year we received 2,000 claims related to dengue under the outpatient cover.

Considering such high number of cases, would premium be enough to the cover the risk?
Our underwriters have studied statistics over the past 7 years and data from the Apollo Hospitals. The average cost of dengue treatment is 30,000-40,000. At one rupee and twenty paisa per day, the Dengue Care provides Rs 50,000 inpatient and Rs 10,000 OPD coverage. I think our risk is adequately covered.

Why did you opt for over-the-counter product category instead of offering it under the regular channel?
Through research and development we solve people's problems. People wanted a product that is simple to buy - no medical tests required. One just needs to give a declaration saying, "I do not suffer from dengue." Hence it is easily to utilize.

How do you keep existing dengue patients at bay from taking the cover?
One needs to sign a declaration before taking up the cover. The person willing to take the cover needs to undergo a test called NS1 and unless he is positive on the test, we don't offer a policy. The first 15-day period from the start of the policy coverage, when no claims are accepted, is a good cushion.

By introducing low cost insurance product, is the company looking at shedding the elite image and go mass market?
We wanted a product on the pricing front that is similar to the government's health plan roll-out and also which is simple to use and cost effective. At Rs 1.22 paise per day, the product is well priced. Dengue affects people from various streams across the nation. The common man on the road to the upper income group, all are susceptible. We are aiming for people throughout the nation and across all age bands.

Are you confident the product would be able to attract eyeballs in the underserved segment?
Dengue Care is a good entry point to insurance as dengue is understood by all. This product would help people to taste insurance. I am confident that once they understand the benefit health insurance offers through Dengue Care, they will migrate to full-fledged health cover. Another set of customers that can benefit from Dengue Care are existing policyholders, who need not give up on their no claims bonus that has been accumulating for years. At a small cost of Rs 444-578, they can protect their no claims bonus worth Rs 1.5 lakh-3 lakh.

How do you plan to market the product?
Existing policyholders can buy the product online. The product would be offered through our agents, clinics at Apollo Hospitals and Apollo Pharmacy too.