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LIC launches Health Plus

By Neha Raghunath

Last Updated at 6pm, Feb 15, 2008

Chennai: Life Insurance Corporation (LIC), the largest public sector insurance provider, has ventured into the health insurance sector with its new unit-linked ‘Health Plus’ scheme. The scheme makes provisions for future health-related expenses.

Assistant Branch Manager of LIC (Mount Road), Mallika Arjun, explained that the premium amount in the scheme would remain constant throughout the entire term and not increase during the yearly renewal. Emphasizing LIC’s welfare-oriented service, he said, “The best point about this policy is that even if your health is good you receive a lump sum majority amount.” Arjun added, “The health insurance market is untapped and has great potential. Hence we decided to come up with such a scheme.”

LIC insurance agent K. Jyothiraman said, “The enquiries for the new policy have been good, but it is difficult to give an exact figure of the policies sold.”

All customers buying this policy can gain tax exemption up to Rs 15,000 in case of adults and Rs. 20,000 in case of senior citizens under Section 80D. The IRDA (Insurance Regulatory Development Authority) which had earlier expressed reservations over the tax benefit has now given its approval.

According to a McKinsey-CII (Confederation of Indian Industries) report, the Indian health insurance market was valued at $812 million. The major players in this sector include New India Assurance in the public sector, and private players like ICICI Lombard, Royal Sundaram Alliance Insurance and Bajaj Alliance General Insurance Co.

Insurance provider SBI Insurance is also planning to venture into the health insurance sector. Central Zone Co-ordinator for SBI Insurance, V. Krishnaswamy said, “Our plans for a health insurance policy are pending with the IRDA. Hopefully in another 2-3 months we can come out with it.”

For more details on 'Health Plus' check http://www.licindia.com/dbs-index.htm

E-mail: raghunathneha@gmail.com