CHENNAI: Apollo DKV, India’s second stand alone health insurer and a joint venture of Apollo Hospitals group and DKV AG, Europe’s largest health
insurer, has drawn up plans to scale up its business and the network of offices in the next couple of years to garner a good share of the growing market for health insurance.
Company chief executive officer, Antony Jacob said in Chennai on Wednesday that against 24 offices now, it would have 30 by March end. Its premium income has now touched Rs 70 crore from Rs 49 crore in 2009-10 and hopes to close this year with Rs 105 crore.
Next year, it plans to add 12 offices and achieve a premium income of over Rs 200 crore. By 2012-13, the JV’s plan is to have 55 offices with a premium income of Rs 700 crore and agents of 40,000 (10,000).
Stating that its present capital of Rs 220 crore is adequate to support the growth plan, Mr Jacob said that it is looking at doubling it after a couple of years. Its employees strength is to touch 1600 by 2012-13 from the current 432.
Speaking to mediapersons on the occasion of launching a new 360 degree health plan — Maxima, the CEO said that Indian health insurance market grew from Rs 500 crore 11 years ago to the current Rs 10,000 crore. In the last three years, the health insurance market has been growing at a CAGR of over 45 per cent and it is expected to clock 50 per cent growth per annum in the next five to seven years.
The venture, which has rolled out first generation products, sees tremendous scope to become a significant player in the segment.
The products are valid in all the hospitals across the country on a reimbursement basis. Its policy holders can avail cashless hospitalisation service in around 4000 designated hospitals, including 42 Apollo group hospitals.
It will leverage on the backing by India’s largest integrated healthcare group in partnership with Europe’s No I pure health insurance company.
Mr Jacob said the venture will go in for bankassurance model for forging tie ups with banks for selling the products once the existing rules (which restricted the tie up to one life insurer and one non-life insurer) are relaxed.
Besides the agency force, it is using exclusive tie ups with NBFCs, database marketing, internet etc, for distributing the products.
He said that the company has started developing co-insurance products and the first one was launched in August this year in tie up with HDFC alliance. Under such initiatives Apollo DKV would design the product while the marketing would be done by the partner.
It will also look at partnering with state governments to cover a large number of weaker sections. It has signed a MoU with Meghalaya government for an insurance scheme (RSY) and is expected to be rolled out next month.
He claimed that Maxima is India’s first 360 degree health plan which is set to redefine health insurance in the country. Initially, it will be available in the four metros and Bangalore and Hyderabad. It has special features like life long renewal benefit, annual comprehensive health check up, Rs 3 lakh cover for IP treatment with pre and post hospitalisation benefits, Income tax benefit and cumulative bonus and carry forward of OPD benefits.