India’s private health insurance sector, which is growing rapidly post the Covid-19 pandemic, is poised for greater growth as industry players set their sights on the ‘missing middle’.
Their opportunity stems from a combination of under-penetration of health insurance, high medical inflation, and the country’s burgeoning middle class.
Among the first off the block is ManipalCigna Health, with a health insurance plan focused on Bharat’s ‘missing middle’.
The ManipalCigna Sarvah plan comes in three variants: Sarvah Pratham, Sarvah Uttam and Sarvah Param, with three kinds of benefits — Anant, Gullak and Sarathi, respectively.
Ashish Yadav, Head-Products and Operations, ManipalCigna Health, compares ‘Sarvah’ to a portfolio management scheme (PMS) for investors — offering diverse options and tailored coverage solutions.
“Even if you do not believe you need to have comprehensive coverage, there is a customisable plan — Pratam and Uttam — catering to this segment at an affordable premium,” Yadav explains.
A recent NITI Aayog report says 30 per cent of the population (35-40 crore individuals) are without any financial protection for health — the ‘missing middle’ — and are most vulnerable.
Customised coverage
Through ‘Sarvah’, ManipalCigna looks to solve three needs — availability, accessibility and affordability.
The products have to be “affordable to the missing middle that resides in Tier 2 or 3 centres and dream of having a health insurance”, Yadav says. If affordability is an issue, then some benefits can be added or reduced, while “yet keeping our objective intact”, he says.
‘Sarvah Uttam’ offers personalised and comprehensive health insurance with an infinite coverage option (Anant). It provides unlimited coverage for hospitalisation arising from cancer, heart condition, stroke, and major organ/bone marrow transplants, with a base sum insured of ₹10 lakh and above.
‘Sarvah Param’ offers Day 1 coverage, ensuring zero waiting period for pre-existing conditions and specific illnesses. With added benefits (Sarathi), customers can reduce waiting periods to 30 days even with pre-existing conditions such as asthma, diabetes, obesity, hypertension, and dyslipidemia.
‘Sarvah Pratham’ provides comprehensive hospitalisation coverage of upto ₹3 crore for cancer, heart condition, stroke, and major organ/bone transplants. Customers also have the option to start coverage from Day 31 for pre-existing conditions such as diabetes, hypertension, dyslipidemia, asthma, and obesity without the usual 36-month waiting period.
It caters to new and existing customers who want to enhance their coverage against major illnesses and accident-related hospitalisation(s).
Lower premiums and tailored coverage help attract a segment that has traditionally been outside the health insurance net, say company representatives.
And the new plan has been designed to reach out to the underinsured or uninsured segments — to provide them with simple and predictable health coverage, they add.