Health insurance companies have recently proposed Friend Assurance feature, which would allow both friends and families to buy a health insurance policy. The idea of friend assurance, which was coined by Religare Health Insurance, Max Bupa Health Insurance and Kotak Mahindra General Insurance has also received Insurance Regulatory and Development Authority’s (IRDA) nod.
This policy promotes healthier lifestyle. Under the proposal, customers can now cover not just their families but also their friends under one policy number. “A 15% discount on premium at the time of renewal will be awarded if there are no claims made (for in-patient care) in the year,” said Religare Health Insurance, which would offer under Rs 5 lakh- Rs 10 lakh cover.
The renewal premium would be decided on the parameters like number of doctor consultations and number of health check-ups. Furthermore, the new policy would have similar benefits of any health insurance policy.
With Health Companion, Max Bupa Health Insurance is estimating an average discount of 5%- 10% if the entire group has a good cumulative score.
IRDA’s concern has been that there should be a commonality in the nature of members of group and it can’t be just formed for the purpose of availing discounts or buying insurance. This new product could assist people to lead a healthier lifestyle.
15% premium cash back would be given to the group that doesn’t make any claim by the end of the year. Features offered by Friend Assurance Policy are already available in few European countries like Germany, however with a different format.