Star Health plans to tie up with overseas companies

In order to spruce up its growth further, India's first standalone health insurance company, Star Health and Allied Insurance Company Ltd, is in talks with a few insurance players in the overseas markets, particularly in the Middle East, Dubai and other countries in the Gulf apart from Maldives to serve their customers in India while they undergo treatment or on medical tourism visit.

"We are in talks with three to four players in these countries to serve their customers while they visit for any medical treatment or on medical tourism purposes. We hope to finalise the deals in the next three months," said V Jagannathan, chairman and managing director, Star Health.

Addressing a press conference here on the occasion of launching the first of its kind health magazine to its customers across the country, he said it was the kind of reinsurance their policies. The customers of those companies (whom the company is looking at a tie-up), who visit India for medical treatment will be taken care of by Star Health while the overseas companies will be the owners of the policies of them, he said. To a specific question, he said, "It is a better option for both of us." However, he refused to disclose the exact details.

According to him, the company has grown over 300% in the last two years and broken even with a marginal profit. "It is a remarkable achievement for a standalone health insurance company to grow and break even in just two-and-half years of its presence," he said. Star has grown from Rs 120 crore in the first full year of operations to Rs 487 crore as of January-end 2009 and expect to end the current fiscal with Rs 520 crore. "We are looking at Rs 650 crore business by March 2010," he added.

While the majority of the business comes from state government orders, he, however, said that the premium from both the retail and corporate sectors will grow in the years to come.