Noida, India (PressExposure) October 06, 2009 -- Reliance Life Insurance, the insurance company which works under the Anil Ambani owned Reliance Capital is focusing more on its health insurance segment rather than promoting its general insurance category. The company has taken this step by analysing the better distribution network of its health insurance business.
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% market share in next 3 years.
Mr Ghosh also said that the company is looking to focus on selling policies designed for the term of 3-5 years. These policies will cover hospitalization 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 the hospitalization is not required.
Currently, India is having only 0.5% of its population covered under the health schemes offered by private companies while total 8% population is covered with government schemes.
According to the records of the year 2008-09 the life insurance ([http://www.paisawaisa.com/insurance/life-insurance.aspx]) companies collected the premium of Rs.352 crore on the account of health insurance ([http://www.paisawaisa.com/insurance/health-insurance.aspx]) 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 6-7 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% equity with its initial public offering (IPO).