Finance minister blunts National Insurance''s competitive edge

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.