Chief Executive of Reliance Capital, Sam Ghosh said that the company is planning to sell three or four types of health insurance products through the life insurance company. The company is targeting a position among top three players in this segment with total 10 per cent market share in the next three years.

 

Ghosh also said that the company is looking to focus on selling policies designed for the three to five year term period. These policies will cover hospitalisation charges, indemnity cover and critical illness expenses. The company is expected to receive approval for these policies by the month of October.

 

There are many health covers present which does not cover the outpatient treatment where hospitalisation is not required. Currently, India has only 0.5 per cent of its population covered under health schemes offered by private companies while total eight per cent population is covered with government schemes.

 

According to the records of the year 2008-09, life insurance companies collected a premium of Rs 352 crores on the account of health insurance policy while non-life companies sold health insurance in bulk.

 

Reliance Life has taken the decision of focusing more on health insurance segment after Insurance Regulatory and Development Authority along with Ernst and Young said that the health insurance market of India is expected to record a sixfold growth in the term of next six to seven years. The company is also looking to get listed in the capital market as soon as possible. Reliance Life is expected to offload about 20 per cent equity with its initial public offering (IPO).