Q: Please guide me on stand alone health insurance in India. What is its future and challenges?

A:Initiating stand alone health insurance companies is a recent development in India, which is expected to boost the penetration of health insurance (HI) in the country. Currently less than 1% of the population is covered under commercial health insurance in comparison to almost 60-65 % in developed countries. It is expected that with greater penetration of HI, the access to health care will also increase. Lack of credible data and expertise in Health Insurance is expected to be fulfilled by such a development. Recommendations of the sub committee at IRDA on Stand Alone Health Insurance companies has also recommended lowering of capital requirements from Rs. 100 crores to Rs. 50 crores, as well as increasing Foreign Direct Investment over the existing 26% cap.