Finance minister blunts National Insurance''s competitive edge
01 Mar 2007
Chennai: Union finance minister P Chidambaram has blunted the competitive edge of National Insurance Company Limited.
The
public sector insurer had launched a health insurance
policy called Varishta Mediclaim targetted at
the senior citizens aged 60-80 years. The policy covers
hospitalisation, domiciliary hospitalisation expenses
(sum insured Rs1 lakh) as well as expenses for treatment
of critical illnesses (sum insured Rs2 lakh) on payment
of additional premium.
The premium for those aged between 60-65 yeas comes to Rs4,180 in the case of hospitalisation / domiciliary hospitalisation and Rs6,187 with a critical illness cover.
In his budget speech Chidambaram, referring to this policy, said that the government has asked the other three state owned insurers — New India Assurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company Limited to launch similar products.
This
according to industry watchers would blunt the initiative
and drive of the individual companies to come out with
differentiated products to meet the competition.