Max India has emerged as the first private sector player to have shown interest in foraying into the health insurance sector. "The company has approached us expressing interest in entering the health insurance business," Insurance Regulatory Authority of India (IRDA) chairman N Rangachary today said at the fourth Global Conference of Actuaries.
Private players have continued to skirt the health insurance sector despite the government favouring them in issuing licences. Most private companies have been carrying out extensive research, trying to understand the market. However, the experience of Mediclaim, the only form of health insurance available till now, has been bad, with a high claims ratio.
The government, in an attempt to further relax the entry norms in the health insurance sector, is also looking at the possibility of reducing the equity limit for stand-alone health insurance companies to below the prescribed limit of Rs 100 crore.
According to IRDA, such a reduction would require a legal amendment, which could be undertaken only if there were substantial reasons for effecting it. The IRDA is expected to review the status in March 2003.
