Chennai: Even as most other non-life insurers shun providing health insurance cover to senior citizens either by outright rejection of their insurance proposals or charging sky high premium, the Chennai-based standalone health insurer Star Health and Allied Insurance Co Ltd, has rolled out the red carpet for the elderly.

The company has launched a new policy called Senior Citizens Red Carpet health insurance to insure people in the age bracket of 60-69 and guarantees policy renewals throughout the insured''s lifetime.

The policy comes with two sum insured options of Rs1 lakh and Rs2 lakh at a flat premium of Rs5,000 and Rs10,000 respectively. The policy also covers pre-existing ailments or ailments at the time of taking out a policy at no extra cost.

A discount of 10 per cent on the premium is allowed on the production of the following documents: (a) stress thallium report (b) blood pressure, sugar (blood and urine) blood urea and creatinine and (c) self declaration or certification that the proposed policy holder has not undergone heart, brain, cancer surgeries in the past. The tests should have been conducted within 45 days from the date of insurance proposal.

But there are catches. The policy is subject to co-payment or sharing of hospitalisation expenses by the insured to the extent of 50 per cent in the case of pre-existing ailments and 30 per cent for all other claims. The maximum claim payable in the case of treatment of (a) cardiovascular diseases, cancer, fractures is Rs75,000 (b) cataract (both eyes included) Rs15,000 (c) renal complications Rs75,000 and (d) all other major surgeries Rs60,000.

Further the claims are subject to various ceilings such as: (a) 1 per cent of the sum insured room rent and boarding (b) 2 per cent of the sum insured for intensive care unit expenses per day (c) 25 per cent of the sum insured for doctor fees and (d) 50 per cent of the sum insured for medicines.

Star Health has also launched another policy targeting those suffering from diabetes Mellitus Type II. The policy covers expenses incurred in treatment of (a) diabetic retinopathy (b) diabetic nephropathy leading to chronic renal failure and (c) diabetic foot ulcer requiring micro vascular surgical correction.

The entry age is between 26 and 65 years and renewals are accepted up to the age of 70 years. The policy comes with various sum insured starting from Rs50,000 and the maximum sum insured available is Rs5 lakh. The claims under this policy are subject to inner limits in respect of room rent.

According to V Jagannathan, chairman and managing director, Star Health, the country has around 30 million people suffering from diabetes and the number if growing. Given this size the company hopes to sell a sizeable number of policies.

The company will soon launch two more products, one for covering HIV infected persons and the other a high-value health insurance policy. The policy for HIV infected person will have a sum insured of Rs50,000 payable to the insured when on being diagnosed as a full blown AIDS patient.

The high-value health insurance plan will have a sum insured of Rs10 lakh and the premium will be lower than what is prevalent in the market, says Jagannathan.

The company hopes to close FY08 with a premium of Rs250 crore, over ten times of the premium earned by the company last year. As per the figures released by Insurance Regulatory and Development Authority (IRDA) last fiscal the company had earned a premium of Rs22.42 crore.