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LIC to launch health insurance products in February

Life Insurance Corporation of India has got the approval of regulator IRDA for its health insurance product 'LIC Health Plus', which would be launched by February.

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NEW DELHI: Life Insurance Corporation of India has got the approval of regulator IRDA for its health insurance product 'LIC Health Plus', which would be launched by February.
    
"We have got Insurance Regulatory Development Authority's (IRDA) nod to launch the health insurance products. The long term comprehensive health insurance products would be launched in the second week of February next year," LIC Executive Director (Health) D D Singh said.
    
The product was originally supposed to be launched in last week of December, but has been postponed partly due to the delay in regulatory approval.
    
Unlike the cashless transaction model followed by competitors, LIC's product would be based on the lines of floater plan, which would give the policyholder the option to receive a lumpsum - which means claims could be made for even treatment undergone at home.
    
"The additional feature would be domiciliary claim, where a patient taking treatment at home will be reimbursed as and when he submits the complete bills," he said.
    
LIC is targeting to provide health cover to close to one crore families in the first year of the launch of the product and expects over Rs 5,000 crore of revenues.
    
The company has claimed that the present cashless model is not in favour of the customer as many hospitals were not accepting the facility. Moreover, in many cases hospitals are charging more if a patient comes with an insurance cover that offers cashless treatment.
    
LIC's product will also be a long-term product of over 10 years.
    
The sources said unlike the current mediclaim products offered by general insurance companies that cover the insured's hospitalisation expenses and are annual in nature, LIC would pay the insured a predetermined lumpsum amount, depending on his premium payment.
    
The product is expected to be marketed in a big way through all distribution channels of LIC, including its over 10 lakh agents.
    
LIC has set up its health department at Hyderabad, which will contain the centralised data.
    
It is also learnt that the product will not have a level premium and will increase with the age of the insured and if more benefits are opted for. The pre-existing diseases will be covered, but with some clauses.
    
It will also have a health savings account and a unit-linked component attached to it. The product will cover outdoor patient expenses, but there will be limits to ensure overcharging by health care providers.
    
Earlier, LIC selected 83 third-party administrators (TPAs) in different regions across the country. The TPAs will issue health cards and will be used only for settling the claims. For claim payouts, the public sector insurer has tied up with Axis Bank, Syndicate Bank and Bank of America.
    
The company's prospects in health insurance business may brighten once the premium rates are liberalised by the IRDA early next year, as the group health insurance premium rates would go up.

 

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