Finance

Niva Bupa

Janice J. Lott December 21, 2024

Introduction

Niva Bupa Health Insurance Company Limited, formerly Max Bupa Health Insurance Company Limited, is one of India’s leading health insurance providers. This article provides a full overview of the organisation, including its structure, reimbursement policies, claims process, and available plans.

About Niva Bupa

Niva Bupa, founded in 2008 by Krishnan Ramachandran, is headquartered in New Delhi. It operates as a joint venture between Fettle Tone LLP, an affiliate of True North Fund VI LLP – a leading Indian private equity firm and the Bupa Group. The company is managed by Krishnan Ramachandran, serving as the MD & CEO, and C.B. Bhave as the Chairman. Niva Bupa specializes in health insurance and healthcare services. For more information, visit their website, Niva Bupa.

  • Founded in: 2008
  • Founder: Krishnan Ramachandran
  • Headquarter: New Delhi
  • Joint venture: Niva Bupa is a joint venture between Fettle Tone LLP (an affiliate of True North Fund VI LLP), a leading Indian private equity firm, and the Bupa Group.
  • Management: Krishnan Ramchandran (MD & CEO), C.B. Bhave (Chairman).
  • Services: Health insurance, healthcare services. 
  • Website: Niva Bupa

Share & IPO

The IPO was priced at ₹74 per share, within a price band of ₹70 to ₹74 per share, with an issue size of ₹2,200 crores through the book-built method. The IPO opened on 7th November 2024 and closed on 11th November 2024. Upon listing, the stock debuted at ₹78.14 per share, delivering a listing gain of 5.59%. Currently, the stock is trading at ₹76.27 per share, reflecting a return of 3.07%.

  • IPO price: ₹74 per share
  • Price band: ₹70 – ₹74 per share
  • Issue size: ₹2,200 crores
  • Issue type: Book built
  • Opening – Closing date: 7th Nov 2024 – 11th Nov 2024
  • Listing price: ₹78.14 per share
  • Listing gain: 5.59%
  • Current Market Price: ₹76.27 per share
  • Current return: 3.07%

Net Worth

Net worth (as of June 2024): ₹20,317.72 million

Claim Settlement Policy

 

Claim type Process Timeframe Steps
Cashless Claims Available at network hospitals only Within 30 minutes 1. Be admitted to a hospital in the network.

2. Provide identification such as your voter ID card, insurance number, PAN card, or health card.

3. Niva Bupa receives the pre-authorization request from hospital authorities.

4. After confirming information, the insurer sends a confirmation to the hospital and to you via SMS.

5. The claim payment is paid immediately to the hospital following treatment and the completion of formalities. 
Reimbursements Claims For non-network hospital treatments 7-10 business days 1. Be admitted to the hospital and treated.

2. At the time of discharge, pay all hospital bills.

3. Gather original invoices, discharge certificates, and medical reports.

4. Complete the claim form, sign it, and send it in with the necessary paperwork and a legitimate ID.

5. After reviewing the claim request, the insurer chooses whether to approve or deny it.

6. You get your money back if the claim is accepted.

 

Niva Bupa: Plans

Niva Bupa offers a wide range of health insurance plans tailored to meet diverse customer needs. Their portfolio includes plans like Aspire, Reassure 2.0, Health Companion, and Health Premia, designed for comprehensive health coverage. Additional offerings such as Go Active, Money Saver, Heartbeat, Supersaver, and Senior First cater to specific requirements, ensuring affordability and inclusivity. Each plan is crafted to provide unique benefits, making Niva Bupa a trusted choice for health insurance solutions.

  1. Aspire
  2. Reassure 2.0
  3. Health Companion
  4. Health Premia
  5. Go active
  6. Money Saver
  7. Heartbeat
  8. Supersaver
  9. Senior first

Benefits of Health Insurance in India

  • Cashless medical treatment
  • No claim bonus
  • Co-Payment
  • Medical checkup facility
  • Post and pre-hospitalisation coverage 

Strengths & Weakness

Strengths: 

  • Rapid Growth: Niva Bupa is the fastest-growing health insurance in India, and it currently leads the sector.
  • Client Retention: The organisation has a remarkable client retention rate, with approximately 90% of clients renewing their policies.
  • Retail Focus: Niva Bupa generates around 67% of its premiums from the retail segment. 
  • Strong Financial Performance: The company’s net profit increased significantly from FY23 to FY24. 
  • Market Share: Niva Bupa has a large market share in the Standalone Health Insurance (SAHI) sector.

 

Weakness:

  • Claims Settlement Ratio: The claims settlement ratio for the firm is 91%, which is lower than the industry average of 96%.
  • Smaller Network: Niva Bupa operates a smaller network of hospitals and agents than its competitors.
  • Increased Costs: Between FY22 and FY24, the company’s average expense ratio was over 43%.
  • Regulatory Challenges: The company’s efforts to offer health insurance policies face obstacles due to the continually changing regulatory environment.
  • Competition: The health insurance industry has become more competitive, particularly since the epidemic, with numerous new competitors joining the market.

Awards received

  • Insurance Company of the Year Fraud Prevention: Niva Bupa received this honour at the India Insurance Summit & Awards 2024.
  • Niva Bupa won the Lone Health Insurer award at the Mint BFSI Awards 2023.
  • The Economic Times and Nielsen named Niva Bupa one of the Best Brands of 2019 in April.
  • Niva Bupa was awarded IT Management Best Practices at the Celent Model Insurer Asia Awards in 2016.
  • Niva Bupa received the Golden Peacock Award in 2015 for their Heartbeat Health Insurance Plan. 

Conclusion

Renowned for its innovative plans and green claim agreement approach, Niva Bupa is a prominent player in the Indian medical insurance sector. Despite having a strong market presence and a large hospital community, it nevertheless faces difficulties, including regulatory repercussions and resistance from various insurers.