{"id":4463,"date":"2017-04-14T11:51:04","date_gmt":"2017-04-14T11:51:04","guid":{"rendered":"https:\/\/securenow.in\/blog\/?p=4463"},"modified":"2023-02-17T05:51:14","modified_gmt":"2023-02-17T05:51:14","slug":"religare-sells-stake-health-insurance-business","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/religare-sells-stake-health-insurance-business\/","title":{"rendered":"Religare sells stake in its health insurance business"},"content":{"rendered":"
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Published in Mint, on 13th April 2017
\nReligare Enterprises Ltd, on 9 April announced the sale of its 80% stake in Religare Health Insurance Co. Ltd (a standalone health insurance company), to a consortium of investors led by True North, a private equity firm. Religare will get about Rs1,040 crore for the deal and the health insurance<\/a> company is valued at Rs1,300 crore.
\nReligare Health Insurance is owned by Religare Enterprises (80%), Corporation bank (5%), Union Bank of India (5%) and the remaining 10% is by the employees of Religare through employee stock options.
\nAs Religare Enterprises prepares to exit its health insurance business and the insurer prepares for a change in shareholding, what does this mean for the policyholders?
\nAs per Anuj Gulati, managing director and chief executive officer, Religare Health Insurance, it means business as usual for the customers. \u201cNothing changes for our customers. They will have the same set of products, premiums rates and phone numbers to call on. Our network of hospitals and claims procedures also remains the same. So there will be complete continuity,\u201dhe said.
\n\u201cIn fact the new shareholders will back the current management and corporate governance policies, so even that doesn\u2019t change. As for the name of the company, as per the shareholder arrangement, we can retain the brand name for a reasonably long period of time, so customers will continue to interact with the same name,\u201d he added.
\n\u201cInsurance is a regulated entity, so the new shareholders will be scrutinized well to ensure that consumers, existing as well as the new one, are protected. Also, given that the products, pricing, network of hospitals, claims servicing won\u2019t change; customers have nothing to worry about,\u201d said Shashwat Sharma, partner and head of insurance at KPMG India.
\nThe product suite<\/strong>
\nIn retail space, the insurer has eight products on offer. In the pure health insurance space, \u2018Care\u2019 is its flagship product, which offers sum insured of up to Rs6 crore. \u2018Care Freedom\u2019 is designed for senior citizens and individuals with pre-existing ailments. \u2018Joy\u2019 focusses on maternity benefits whereas \u2018Enhance\u2019 is a super top-up plan<\/a> that allows you to buy additional health insurance at cheaper costs.
\nAmong the defined benefit health plans, the company has a personal accident insurance policy<\/a> and a critical illness plan<\/a>, which bundles a personal accident policy as well.
\nA defined benefit plan pays lump sum to the policyholder in case an insured event takes place. For instance, a critical illness plan will pay the sum assured or the insured amount to the policyholder in case she is diagnosed with any of the critical illnesses listed in the policy.
\nThe insurer also has two travel insurance plans<\/a>, one for leisure and business travellers and the other specifically for students going abroad to study.
\nWhat will change?<\/strong>
\nThe product suit will continue as it is, however as per Gulati, because of the deal, a major thrust on fintech can be expected going forward.
\n\u201cThe new set of shareholders have been tracking the sector and interacting with us for quite some time. They share our vision, and have a deep focus on fintech. In fact that\u2019s what they hope to bring to the table. One can expect rapid adoption of technology in the future,\u201d added Gulati.
\nEven in terms of pricing there is nothing to worry about.
\n\u201cTypically, during a takeover or a merger, the regulator is hesitant to allow for any sudden rate hikes, so as to protect policyholders. So in this sense, customers will not have to face any surprises,\u201d added Kapil Mehta, co-founder, SecureNow Insurance Broking<\/a> Pvt. Ltd.
\nAs per Gulati, pending regulatory approvals, the change in the shareholding structure should be complete over the next few months.<\/p>\n","protected":false},"excerpt":{"rendered":"

Published in Mint, on 13th April 2017 Religare Enterprises Ltd, on 9 April announced the sale of its 80% stake in Religare Health Insurance Co. Ltd (a standalone health insurance company), to a consortium of investors led by True North, a private equity firm. Religare will get about Rs1,040 crore for the deal and the […]<\/p>\n","protected":false},"author":4,"featured_media":3131,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"","_lmt_disable":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[410,319],"tags":[36,340,534,1396,1408,1409,1410],"class_list":["post-4463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-media-coverage","category-media","tag-health-insurance","tag-travel-insurance","tag-individual-insurance","tag-insurance-broking","tag-personal-accident-insurance-policy","tag-critical-illness-plan","tag-top-up-insurance-plan"],"acf":[],"modified_by":"SecureNow","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/4463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=4463"}],"version-history":[{"count":4,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/4463\/revisions"}],"predecessor-version":[{"id":25333,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/4463\/revisions\/25333"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=4463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=4463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=4463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}