Health insurance is promising to be a major component of non-life insurance business. At present, it is subject to free pricing. A comparative analysis of premium rates charged by various non-life players under the health policies is attempted to ensure the reasonability or otherwise of rates.

Insurance is the sunrise sector today and it will continue to be so for at least another 5-10 years. Out of the two major sectors of insurance - life and non-life, the life sector is growing by leaps and bounds. Non-life insurance is not growing as fast as life insurance but health insurance is one of the fastest growing segments and a major component of non-life insurance business. It promises similar exponential growth on the lines of life insurance. Yes, health insurance has positioned itself today as one of the throbbing classes of insurance in the non-life sector; hence, all existent non-life players and new players are placing a lot of emphasis on this segment of business that promises a great deal in terms of business volume as well as service to mankind.

Rapid economic development, increasing stress and changing lifestyles has refocused popular attention on the health sector. Cost of treatment has gone up substantially due to exemplary advancement in medical technology and surgical procedures. Diseases considered incurable a couple of years back are now within the ambit of cure. The treatment is costly no doubt but the silver lining is that it is now available. The medical facilities now come with a cost that the common man cannot afford. This explains the growing relevance of health insurance in the present context.

It is said that the potential of health insurance in India is estimated to be in the region of a whopping Rs. 80,000 cr which is four times the current total business coming from non-life area. Currently, 13 out of 15 players operating in non-life insurance market are having health insurance products (ECGC & AIC being the sole exceptions).

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