With life insurance companies successfully introducing unit-linked health insurance products, their general insurance counterparts too want a piece of the action.
As the health ULIPs offered by life insurers are gaining popularity, general insurance companies are keenly watching the space.
The country's largest state-run insurance company, Life Insurance Corporation, is offering a unit-linked health insurance product — Health Protection Plus. The plan offers a health insurance cover for the entire family, hospital cash benefit and major surgical benefit along with a ULIP component that is specifically designed to meet domiciliary treatment benefit and outpatient department expenses for the insured members.
“These products are lucrative. On the one hand, medical illnesses are getting covered and, on the other, maturity benefit is additionally provided. However, these products are generally costlier than plans offered by general insurance companies,” said Mr Satkam Divya, Business Head, Rupeetalk.com.
Perception problem
“Customer perception is a reality for us in the insurance business. A pure outgo is harder to take a call on. Savings-linked health insurance is an interesting segment that can be looked at,” said Mr Karan Chopra, Head, Retail Business, HDFC Ergo.
“As general insurance companies, we are also looking out for what they are offering. It is another competition that is coming up,” said Mr. T. A. Ramalingam, Head-Underwriting, Bajaj Allianz General Insurance
Experts in the insurance industry say that health insurance companies are looking at adding various features to spruce up their product offerings.
“Currently the thing that is in our favour (general insurance companies offering health products) is our spread, which is much larger in the sense that we cover more parameters and we are attuned to handle more claims.
“However, our products need to have features too. We are looking to launch some new products which can match up or even better it. We are already working on coming out with some more additional features,” added Mr Ramlingam.