Insurers bet on students

BY OUR CORRESPONDENT

Mumbai

Aug. 17: Cheaper manpower has helped Indian general insurance companies make rapid strides in the students medical insurance segment.

It helped the industry post a 50 per cent growth in the segment as compared to its counterparts overseas.

Every year around 1.5 lakh Indian students go abroad to pursue higher studies. The general insurance companies are trying to tap this segment with its cost advantage. A student, who is going abroad, can roughly save Rs 30,000, if he buys insurance product in India rather than overseas.

To reach out to the masses and to simplify the purchase, the companies are also going online and getting an edge against their competitors. "There is an increasing trend among Indian students to go abroad for higher studies. In the developed world, it is mandatory for the students in the universities to have medical insurance cover. But considering the high standard of living in these countries, students end up higher premiums," said Mr Kartik Jain, head marketing and e-commerce, ICICI Lombard general insurance company. Apart from the savings on the premium, he said Indian students get the advantage of travel insurance which covers baggage loss, passport loss etc. if they avail a cover in India. He said ICICI Lombard has started an online service, which gives advantage to the students as they can get the policy, renew it and alter it from anywhere in the world.

"Further, it has also posted details of 500 universities around the world with their specifications, so that students could secure personalised cover. Since this online facility has started, as many as 30 per cent of the students have opted for," he added.

The claim ratio of students medical insurance is around 40 per cent of premium collected.

Increasing usage of credit card and access to Internet is also fuelling the growth of the online business, he said. ICICI Lombard has offered interest free EMI on premium accounts for ICICI Bank and Citibank credit card holders.

Bajaj Allianz general insurance company is also eyeing this niche segment. The company has not only made available a toll-free number which can be accessed from anywhere in the world but it has tied up with Jet Airways for the convenience of customers.

Bajaj Allianz also offers online service and stresses on making the claim settlement procedure hassle free, said a company spokesperson.

Mr V. Sithapathi, director, Insurance Brokers Association of India, said, "There are certain universities abroad that cover students medical insurance in their admission fees. So the students opting for these universities do not have any choice. But if the student is opting for an university which does not have these kind of arrangements, then he can certainly get an advantage by insuring himself in India at a lower rate."