Now life insurance companies will also be able to sell health insurance policy, premium will be cheaper, LIC will get maximum benefit

Life insurance companies will also be able to sell health insurance.

Insurance regulator IRDAI is considering allowing life insurance companies to sell health insurance policies. It is believed that this will reduce the health insurance premium by 5-10 percent.

Life insurance after corona pandemicLife Insurance) and the awareness of people towards health insurance has increased. Insurance regulator, IRDAI to companies selling life insurance health insurance ,Health Insurance) can be allowed to sell. A draft guideline can be issued in this regard very soon. It is believed that due to the changed rule, the premium of health insurance will fall and more and more people will be able to take advantage of it. According to a report published in Mint, the customer base of life insurance is higher than that of health insurance. In such a situation, when these companies are allowed to sell medical insurance, then more and more people will be able to take advantage of health insurance. The internal committee of IRDA is considering this proposal.

It is believed that LIC will get the maximum benefit if life insurance companies are allowed to sell health insurance policies. LIC is the largest life insurance company in India. It has a market share of 64 per cent on the basis of premium collection, 66 per cent market share on the basis of new business premium and close to 75 per cent market share on the basis of number of policies.

LIC will benefit the most

Life Insurance Corporation’s stock is in bad shape after the IPO listing. The stock has lost more than 30 per cent against the issue price. The issue price for LIC was Rs 949 which came down to Rs 650. The stock is witnessing an uptrend since the last two trading sessions. At present, this stock is trading at the level of Rs 665.

Penetration of life insurance is just 3.2%

If we look at the insurance sector market in India, then the situation is bad. Penetration of life insurance companies was 3.2 percent in the year 2020, which was just 2.82 percent in 2019. This data is based on the Economic Survey 2021-22. Non-life insurance, which includes health, motor, fire, industrial insurance, has a market penetration of just 1 per cent. The global average is 4.1 percent.

Premium up to Rs 7000 for health insurance of 2 lakhs

At present, if one buys health insurance of Rs 2 lakh, then his annual premium is between Rs 5000-7000. This amount of premium will be there if the insured is an adult (18-50 years) and there is no pre-existing disease. It is believed that if general insurance companies are allowed to sell health insurance, then the premium will drop by 5-10 percent.

Health insurance contributes 33% to non-life premium

Health insurance has a huge contribution in the world of insurance. Health insurance alone contributes close to 33 per cent of the non-life insurance premium. In the financial year 2021-22, the total premium amount of health insurance companies was Rs 73578 crore. Earlier, life insurance companies were allowed to sell health insurance products in the country, but in 2016 IRDA issued an order prohibiting it.

At present 24 companies of life insurance

In the month of April, the new business premium of life insurance companies registered a jump of 84% on a yearly basis and the total premium amount was Rs 17940 crore. Life Insurance Corporation had a major contribution in this. At present there are 24 companies present in the field of life insurance in our country. The total new business premium of these companies in April 2021 was Rs 9739 crore.

LIC’s dominance in life insurance

LIC dominates the market in the field of life insurance. According to IRDAI, in the month of April, its new business premium registered a jump of 141 percent on a yearly basis and the total amount stood at Rs 11716 crore. In April 2021, the company’s total new business premium was 4856.76 crores.

Five Standalone Health Insurance Private Companies

There are five private insurance companies selling health insurance in the country. In the month of April, the premium collection of these five standalone health insurance companies stood at Rs 1550.14 crore, with a jump of 29.14 percent. The premium income in April 2021 was Rs 1200 crore.

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31 non-life insurance companies in the country

At present there are 31 non-life insurance companies in the country. Of these, the gross direct premium collection of 24 general insurance companies in the month of April was Rs 19705 crore. It has registered a growth of 23.57 percent on a yearly basis.