'Raise FDI in health insurance'

The healthcare industry on Friday asked the government to revamp the foreign direct investment and capital adequacy norms for health insurance entities to make world-class medical treatment available to Indians and make the country a healthcare hub in the world.

"The government and the Insurance Regulatory and Development Authority need to facilitate the growth of health insurance by having a relook at the present FDI regulations and the capital adequacy norms which limit the role of foreign players in this sector," Apollo Hospitals executive director (operations) Sangita Reddy said on the sidelines of 'Healthcare Conclave 2005' in Mumbai on Friday.

Health insurance penetration was only one per cent of the country's total population, she said and added that there was a need for public-private initiatives to popularise the concept of health insurance in the country.

The day-long conclave was inaugurated by Maharashtra Governor S M Krishna who said that the health care industry should not neglect the rural sector of the country.

"The time has come for Indian health care industry to go on an expansion spree and offer niche service to the outside world but care ought to be taken that the Indian rural sector is not neglected," Krishna said.

Wockhardt chairman Habil Khorakiwala said the industry wanted the government to do away with duties and tax structure on medical equipment and technology which would help in reducing costs by 30 to 40 per cent and make healthcare facilities accessible and affordable to Indians.