Star Health kick starts operations

Star Health & Allied Insurance, the country's first standalone health insurance company, has commenced operations, offering a unique facility of round-the-clock free consultation with doctors on a toll-free number.

The Chennai-based health insurer, in which Oman Insurance Company holds10 per cent stake, started selling its policies from May 18 at its 19 offices in various parts of the country.

The company plans to establish 65 more offices by mid-June 2006, more than half of which would across Delhi, Mumbai, Pune and other metros.

V Jagannathan, CEO and MD, said, "Our premium rates are very competitive. The company has networked with more than 200 hospitals in the south and is networking with northern and western hospitals."

Star Health, within a week of launching operations, has collected sizeable among of premium and expects to close 2006-07 with total premium income of over Rs 70 crore.

The company has overseas mediclaim policies, group and individual mediclaim policies for all sections and personal accident policies for students.

The company will be increasing the product basket and intends to introduce long term health insurance policies soon, said Jagannathan.

The company has also decided to service the policy-holders through its own officials rather than depending on third-party administrators (TPAs).

TPAs are employed by insurance companies to be the link between the policy-holders and hospitals for cashless treatment.

Jagannathan said, "Star Health is looking at direct sales through 1,500 offices, agencies, brokers and tie-up with business houses and banks." Star Health and Allied Insurance has begun operations with a capital base of Rs 105 crore.