Birla Sun Life launches health care schemes, keen to hike stake in Indian joint venture

Our Banking Bureau
24 July 2004

Hyderabad: Sun Life Financial Inc says it would be keen to increase its stake in Birla Sun Life Insurance (BSLI) if the government can amend the Insurance Act. Speaking about the government's announcement to hike FDI (foreign direct insurance) in insurance Joe Dahl, vice-president (underwriting), Sun Life Financial Inc, said: "We welcome the move and have made the necessary allowances. The matter will be discussed when the law is passed."

Birla Sun Life recently launched two new health-related insurance initiatives here, which are the Critical Illnesses (CI) Plus Rider and the Woman First Plan.

K S Gopalakrishnan, vice-president and appointed actuary, Birla Sun Life Insurance, said.

"The CI Plus Rider covers 17 major illnesses and can be added to any of the other plans offered by Birla Sun Life." The illnesses covered under the scheme include both common illnesses and those which require hospitalisation or surgery. The scheme is targeted at those in the 18 to 50 age group and provides a maximum insurance cover of Rs 10 lakh.

According to Gopalakrishnan, the Woman First Plan is the first scheme exclusively for women in the country. "The scheme offers high growth potential along with a safety net in the form of a three per cent guarantee on the premiums of policy fees and charges," Gopalakrishnan said.

The plan apart from offering the regular benefits of a life insurance cover also covers illnesses specific to women.

Sun Life Financial has a 26 per cent in Birla Sun Life with the Aditya Birla Group holding the remaining 74 per cent. For the financial year ended March 31, 2004 Birla Sun Life recorded a 253 per cent growth in premium income at Rs 462.5 crore.

Birla Sun Life has a 22 per cent market share among the private insurance players in India and a three per cent market share among all the insurance players, including the four public sector insurance companies. Birla Sun Life at present has eight offices in south India and has plans to open another four during the current financial year.