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Royal Sundaram & Rashtriya Swasthya Bima Yojna (RSBY) scheme implementation

31 December, 2011

Royal Sundaram is pleased to implement the RSBY health insurance scheme in 8 districts of Bihar, 16 districts in Arunachal Pradesh and 4 districts of Sikkim, under the authorization from the respective state government. Under the aegis of this project, we aim to support the government in addressing the glaring inequities in rural health at the micro level and bridge the prevailing gaps in healthcare. A long-term perspective plan for rural health such as this scheme will also go a long way in improving the quality of rural life.

The 8 districts of Bihar include - West Champaran, East Champaran, Sheohar, Vaishali, Araria, Katihaar, Kishengunj and Sitamarhi. So far, Royal

Sundaram has provided 12,69,500 health cards to families in these 8 districts of Bihar. Royal Sundaram has recorded highest enrolment for the scheme in Sheohar district. As of today, the Company has settled 20,987 claims in the region. The Smart Cards provided to the BPL families is valid for 1 year and get renewed after completion of 1 year.

Initiatives by Royal Sundaram to spread awareness in Kishanganj:

In order to beat concerns such as lack of awareness about the scheme due to high illiteracy in the district, Royal Sundaram is actively involved in conducting frequent health camps for the RSBY beneficiaries. Such platforms have helped them to come forward with their health problems and find a solution. This year, between the period of March 2010 to December 2010, Royal Sundaram has already organised 24 of health camps in the district, benefiting 3367 people. In Kishanganj district headquarter; Royal Sundaram has put up a District Kiosk for efficient coordination and modifications or rectifications in the smart card BPL families. Royal Sundaram also designed and distributed RSBY scheme communications in form of pamphlets and posters to all.

As we see, apart from the lack of infrastructure in rural areas hampering accessibility, major concern is lack of good medical facilities. However, Royal Sundaram has been able to address the challenge by empanelling good quality hospitals in and around Kishanganj, adequate to cater to the population. Hospitals are continuously educated and encouraged to upgrade their infrastructure. We have been frequently conducting hospital workshops to bring more awareness in to the guidelines of the scheme, and the operating model. These workshops provide a great platform for ironing out all issues relating to the scheme.

RSBY Scheme: RSBY (Rashtriya Swasthya Bima Yojna, National Health Insurance Scheme) was launched by Ministry of Labour and Employment, Government of India to provide health insurance coverage for Below Poverty Line (BPL) families. The objective of RSBY is to provide protection to BPL households from financial liabilities arising out of health shocks that involve hospitalization. Beneficiaries are entitled to hospitalization coverage up to Rs. 30,000/- and  need to pay only Rs. 30/- as registration fee while Central and State Government pays the premium to the insurer selected by the State Government on the basis of a competitive bidding.  Pre-existing conditions are covered from day one and there is no age limit for five members of the family which includes the head of household, spouse and up to three dependents. RSBY provides the participating BPL household with freedom of choice between public and private hospitals.  Every beneficiary family is issued a biometric enabled smart card containing their fingerprints and photographs which can be used to avail cashless benefit in any of the empanelled hospitals. All the hospitals empanelled under RSBY are IT enabled and connected to the server at the district level. This will ensure a smooth data flow regarding service utilization periodically. For the first time IT applications are being used for social sector scheme on such a large scale.

About Royal Sundaram: Royal Sundaram Alliance Insurance Company Limited is a joint venture between Sundaram Finance and RSA Insurance Group plc, UK, where the former holds 74% and the latter holds 26% of the equity. Royal Sundaram is the first private non-life Insurance Company licensed to operate in India.

Royal Sundaram offers a range of innovative general Insurance products which includes Motor, Health, Personal Accident, Home and Travel Insurance for individual customers. The Company's Accident & Health claims process received ISO 9001-2008 certification for effective customer service delivery.  For Commercial clients, Royal Sundaram offers a wide range of specialised insurance covers in Fire, Marine, Engineering, Liability and Business Interruption risks. Royal Sundaram also offers specially designed products to the Small and Medium enterprises and Rural customers.  Royal Sundaram currently has over 5 million customers, over 1700 employees and its products are distributed in over 180 cities across India, through Agents, Distribution Partners, Affinity Partners and Brokers.

About Sundaram Finance: Sundaram Finance, a Non-Banking Finance Company, is one of the most respected financial services companies in India. It finances the entire range of commercial vehicles, passenger cars, construction equipment & tractors. The Groups operations also extend to Insurance, Asset Management, Home loans, Business Process outsourcing, Infotech Solutions and Logistics services. Sundaram Finance has a Nationwide presence with over 500 branches and over half a million customers and depositors who are serviced by over 2500 employees.  Sundaram Direct, its retail distribution arm offers multiple choices of various financial products like, loans, life & general insurance, mutual funds, deposits etc., to its customers through out India.

About RSA: With a 300 year heritage, RSA is one of the world's leading multinational quoted insurance groups. It has the capability to write business in over 130 countries and major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East, Latin America and Central and Eastern Europe. Focusing on general insurance, it has around 23,000 employees and, in 2009, its net written premiums were £6.7 billion.

For further information:

Saradamani Dey
Royal Sundaram Alliance Insurance Company Ltd.