Losing out on a medical insurance policy renewal because of a hefty claim may soon be a thing of the past. That is, if one goes by the stated objectives of the recently launched Max Bupa Health Insurance Company. It promises to guarantee renewals on health policies irrespective of the amount of claims made by the customer. The premiums charged on these policies are 25-30 per cent more than other similar ones available in the market.
Dr Damien Marimon, CEO, Max Bupa Health Insurance, told Business Line that the company follows the community pricing model that is practiced by its UK-partner Bupa and, therefore, would not load extra premiums on the customer for claims made.
Neither would it give discounts or bonuses for not making claims. Max Bupa health insurance would have different premiums for every age of the customer. “We believe in increasing the premiums gradually and not sudden hikes,” he said.
Asked whether it would not be losing good customers because of this, Dr Marimon said, that unlike car insurance, health insurance is different as it deals with human beings. “The message we are driving across is that the insured is more important than his money,” he said.
The company has also divided the country into three zones depending upon the health care costs in each location. For example, Mumbai would fall in the high-cost category while Delhi in the second category and Chennai the least cost category.
People living in Mumbai would be paying 5-10 per cent more premiums compared to their counterparts living in Chennai.

Source – thehindubusinessline.com