Digital space to offer big opportunity in future!
7^th October 2009

Which one do you recommend – individual or floater for higher coverage?

I am not sure if insurance companies love floaters as they have played a big role in promoting floaters as it depends on the price. Say in case of two individuals, taking one lakh each - husband and wife and in the same age group. If there was no floater invention, I would have had Rs. 1000 each premium, ( totaling Rs. 2000) and in all probability the couple will take Rs. one lakh policy. But with floater they will give me premium in the range of Rs.1500 –1600, why would I like that? The frequency and the average claims will be much higher here, but if there is demand we are ready to do that.

Speaking from the customer’s angle,it would make sense to look at floater cover. The probability of more than one person having possibility of exceeding the insured amount is very low. I would personally advice not to compromise on the coverage though. Between husband and wife - I would be tempted to take Rs. 2 lacs as floater instead of Rs 1 Lac which they might have taken as individuals, by doing so I am getting the much higher coverage.

In our policy if the eldest member dies, the policy is passed on to the next member and even if a child becomes 25 he too can continue in the same policy. These are unique to our policies and further strengthens the case to take a floater cover.

Recently IRDA has attempted several measures to impart transparency in the health insurance. What impact it will have on the customers and how insurance companies are gearing up to deal with this? Will this move lead to rise in the premiums?

We welcome this move. I don’t think transparency will lead to rise in premiums. We believe our success is hugely dependent on how happy our customers are. So the more we are transparent in the initial stages, the better of we will be in future if the claim happens. We insist on thorough medical check ups so that we are clear in underwriting. Let me add here that we are only one of the few companies in India who do underwriting claims case by case. This is done for imparting transparency. It is important that the customer understands what is covered and what is not covered and for what he is paying his premiums. We believe our customers should be our chief promoters otherwise we will not be successful. Health Insurance is our only product so we cannot afford any of my customers to be unhappy.

World over insurance companies have a network of health care providers which is more or less same. In your case network itself is a promoter. Is it good for the consumer?

We have been requested for both as some customers enquire if we have restricted cover - for Apollo only. Whereas others enquire whether we have unrestricted cover. It is our intention to cater to both. At this stage we do not have restricted cover. Let me share with you that in tier I and II cities, there is not much of healthcare capacities but it will catch on over a period of time. So when the capacity increases, then restricted network offers you that price advantage.

Factors like co-pay and deductibles - do they serve the purpose with the consumers?

Given a choice, no customer will opt for co-pay. I think that demand is there for full payment and we are not mature enough as health insurance industry. We have it in one of our products because there is always a section of a premium customer which prefers this way. We would like to cater to as many citizens of India, so there will be people who would like to have co-pay and we will serve them but I cannot say whether it will be a substantial chunk.

You have some very innovative products in your kitty, but how do you plan to create awareness about the same?

We have core products with some variations, whereas some policies also have many iinnovative features which not many people are aware of. There is a need to market them. In few months time Apollo DKV will have unique products in the offerings. Apollo DKV as a brand will be very visible and you will see products being spelt out in different media.

About Apollo DKV >>>

Quality healthcare and Apollo have become synonymous in the Indian subcontinent, a fact reiterated by global healthcare experts and international accreditation bodies. Committed to bring world class health care within the reach of every individual, Apollo Hospitals Group has joined hands with DKV, a world leader in the field of health insurance. The joint venture is poised to make good the conviction of both the partners that Indian health insurance market is on the brink of explosive growth.