Max India inks pact with UK firm for health insurance business

NEW DELHI: Private insurance-provider Max India has entered into an agreement with the UK-based Bupa to set up a standalone health insurance company.

The joint venture partner British United Provident Fund (Bupa) will hold 26 per cent of the stake in Max Bupa Health Insurance Ltd with Max holding the rest. However, Bupa will have an option and right to go up to maximum amount of FDI allowed by the government in case FDI reforms take place, Max India Chairman Analjit Singh said here today.

The initial share capital of the JV will be Rs 100 crore and the business is expected to be up and running in 12-15 months, Singh added.

He said, "We are not in a hurry to launch (the JV) immediately. We want to have ground preparation first which will take at least 12-15 months".

The company has expertise in healthcare facilities, which, at present, has a customer base of 2.7 million, he added.

Singh said the products will be rolled-out phase wise as "that would be prudent for us". It will be a phased, region-wise roll-out that would make the presence of the company efficient.

The JV plans to consider all possibilities like individual, retail and group insurance and is targeting one million customers initially.

Pointing out the favourable demographics of India, Director Max India Anuroop Singh said the country has huge potential for health insurance as the average age is expected to be 29 years in the next 12 years with people getting more spending power.