The reason why Insurance Companies lost money and that too heavily is that while issuing group/ corporate policies they give coverage for:
• Pre-existing diseases
• Maternity
The question arises – If pre-existing and maternity coverage is not given to individuals/ families then why it is being giving to corporate? Is this not a restrictive practice? Should we try to stop it?
Is it the desire of the insurance companies to show high top line figure that business is accepted by insurance companies from corporates at low premium rate?
Is it that large corporates are having bargaining power because of large number of personnel to be covered and big ticket cheque being issued by them?
Some of these questions need to be answered. Comments are invited.