Malvinder, Shivinder plan to enter health insurance biz

NEW DELHI: Malvinder and Shivinder Singh, the former owners of pharma company Ranbaxy Laboratories, are exploring a foray into the health insurance business. ���We are open to evaluating the option (foray to health insurance). The group is already in the healthcare and financial services segment . So, it makes sense for us to be present in the health insurance segment,��� Ranbaxy CEO and MD Malvinder Singh told ET.

Religare Enterprises, a company promoted by the Singhs, offers a range of financial services, including general insurance . Younger brother Shivinder Singh heads the hospital chain, Fortis Healthcare. The Singh brothers also run Super Religare Laboratories, a diagnostics chain, and pharma retail chain Religare Wellness.

If the Singh family enters the health insurance segment, it will be pitched in direct competition with two standalone health insurance companies launched by its healthcare rivals. Last year, the country���s largest hospital chain, Apollo Hospitals , forayed into the segment with a 74:26 joint venture (JV) with German health insurer DKV. A few months ago, Max Healthcare joined hands with UK-based insurer BUPA in a similar JV for a health insurance venture.

The former Ranbaxy owners got about Rs 10,000 crore by selling their 34.8% stake in the country���s largest pharma company to Japan���s Daiichi Sankyo. Mr Singh had earlier said he would invest in the healthcare and financial services businesses.

While private healthcare players have been providing world-class medical services, the high cost has been a deterrent to mass accessibility . Unlike developed countries, about 80% of Indians pay their medical expenses from their own pockets. Health insurance is seen by experts as one way to increase accessibility . The government recently proposed to raise the foreign direct investment (FDI) limit in insurance to 49% from 26% and is expected to encourage foreign health insurers to start operations in India.