annual report 2009-10 - IRDA

ANNUAL REPORT 2009-10Personal Accident policies, which can again be availed on standalone basis or as part of packagedproduct with health insurance, are also a useful supplement to the hospitalisation indemnity products.Most insurance companies offer critical illness benefit products that provide a lump sum amount onthe diagnosis of specified dreaded diseases like cancer, heart attack, coma or major organ failure.While these diseases may be quite infrequent and a one-off occurrence, their impact can be bothemotionally and financially devastating on the household where such illness occurs. Critical Illnessproducts that are available as standalone or as add-on/riders to life and non-life policies or as acomponent of a packaged health insurance product could supplement the indemnity product andmake the health insurance cover comprehensive.Most of the above mentioned products are now being offered by insurance companies for a periodlonger than a year. Many of these products have features requiring the insured to undergo regularhealth check ups and some of them even provide round the clock suggestive medical advice overphone and through e-mails. Some insurance companies have also created dedicated platforms whichprovide necessary health information to their policyholders through specifically designed web portals.In addition to the above, there are many products based on disease management platform. Theseproducts are primarily targeted at persons who may be already suffering from chronic diseases likeDiabetes. Such products include cover for medicines and laboratory tests on OPD basis, in addition toother covers under the product. This category of products may develop further in the days to come asa useful supplement to the hospitalisation indemnity coverage for a person who is affected with sucha chronic ailment.There are also riders now available that, for a fixed upfront premium, allow free dental or OPDconsultations from the provider network of the insurance company and thus cover dental treatment orOPD treatment in a limited way. Although no medicines or investigations are covered in this rider, it isone step towards coverage of OPD costs.Another option now available is the top-up or high-deductible cover for individuals (and families) whoare already covered by their existing insurance companies or employers with a sum insured limit(deductible). Such individuals can buy the top-up covers that provide them coverage beyond thedeductible chosen.All the above products, with the exception of Personal Accident products, only provide coveragewithin India. When travelling out of India, yet another tier available for protection against healthcontingencies is Overseas Medical Insurance policies, which are sometimes packaged as OverseasTravel plans by including other components like loss of passport, loss of baggage, etc. In days tocome, industry may witness products offering medical coverage targeted to international travellerswith coverage extending beyond travel and not limited /restricted to medical emergencies and accidents.In fact the insurance companies are deliberating on products targeted to international travellers sanstravel components.Though most of the health policies offered now are annually renewable, insurance companies areinnovating ways to establish long term arrangements with the policyholder by offering long term policiesor by incentivising timely renewals, free health check-ups, loyalty vouchers for OPD covers, etc.45