Star Health and Allied Insurance said it plans to raise Rs. 1.5 billion for the financial year 2012-13 to increase its solvency margin.
Solvency ratio refers to the difference between an insurance company’s capital and estimated liabilities. Insurance companies are required to maintain a minimum solvency margin. Star Health’s current solvency margin was at 1.76% compared with the industry’s 1.5%.
The insurer said it would get listed after the guidelines for insurers are released by IRDA (Insurance Regulatory and Development Authority) and SEBI (Securities and Exchange Board of India).
Today, the company launched its two products—Star Comprehensive and Star Family Delite. Star Comprehensive comes with no room rent capping, no disease wise limits and includes hospital cash benefit and new born baby cover. Star Family Delite covers in-patient hospitalisation expenses. It also covers pre- and post-hospiltalisation expenses.
It is expecting the total insurance premium to reach Rs 10 billion crore from the market segment.