After IRDAI asked life insurers to come out with benefits based health insurance policies in which insurers pay reinstatement value on hospitalization, Birla Sun Life Insurance has introduced a new health insurance policy called ‘CritiShield Plan’, a policy covering two major illness - cardiac and renal illness.
Last year, IRDAI mandated that life insurance companies can no longer offer pure indemnity based health insurance policies. However, they can come out with fresh policies in line with non-life insurers and standalone health insurers. Typically, health insurance policies offered by life insurance companies pay certain amount for a particular disease on claim settlement.
Speaking on the launch of the new policy, Pankaj Razdan, MD & CEO, Birla Sun Life Insurance (BSLI), said, “CritiShield is designed to ensure a financially uninterrupted life for the customer and his family in case of the onset of any cardiac and/or renal illness.”
Sharing his expectations with the new policy, he says, “Currently around 3.8% of our total insurance premium comes from health insurance plans. CritiShield is projected to increase this figure to 7.5% in future.”
The policy term ranges between 5 and 20 years for the sum insured of Rs.10 - 50 lakh. Policyholders can buy coverage for minor as well as major stages of cardiac and renal illness. The company will not provide coverage for pre-existing complications related to heart and kidney.
Another key feature of the policy is premium waiver. Once the policyholder makes a claim, the company will waive all future premiums for 5 years. In addition, the insurer will provide monthly income equivalent to 1% of the sum insured on such a condition.
With an AUM of Rs. 34,523 crore as on March 31, 2017, Birla Sun Life Insurance received new business premium income of Rs.5,724 crore in FY 2016-17.