Raghav Iyengar, EVP & Head of Retail & Institutional Business, ICICI Prudential MF
22nd February 2016
In a nutshell
A year ago, we suggested a product idea: Simple idea to gather stable assets. In the last 2 WF conferences, we have been tabling this idea for the industry to take up. It is therefore with a deep sense of satisfaction that we write this intro piece for an interview with Raghav, where he discusses the launch of a product that taps very effectively into the vast pool of "contingency funds" that most Indian savers keep aside - largely for medical contingencies.
What Raghav and his team have done goes far beyond just branding and packaging of a contingency fund - the Medical Advantage Feature linked to the ICICI Prudential Savings Fund offers a host of conveniences you need when medical emergencies strike: cashless facilities across hospitals, medical discounts, 24X7 doctor access and second opinion on medical situation.
Your clients now have a solution that enables them to save smartly for medical contingencies, and get a load of benefits at no extra cost. You now have a great opportunity to attract huge pools of "safe money" that always eluded you and sat idle in savings accounts and savings account linked deposits.
Thank you, team ICICI Prudential, for taking up this idea and creating a product with a whole lot more.
WF: What is the Medical Advantage Feature that you have introduced in your ICICI Prudential Savings Fund?
Raghav: The Medical Advantage Feature introduced in ICICI Prudential Savings Fund is the first of its kind in the industry. The feature helps investors pay for healthcare expenses through their investment in ICICI Prudential Savings Fund. It gives them easy access to hospitals and healthcare centres in case of medical issues without compromising on the quality of healthcare. We have introduced this feature in partnership with Vidal Healthcare Services Private Limited, a health management and services company with a pan-India presence.
This Feature helps investors to:
Be prepared for emergency health related expenses
Share this facility with your family (maximum two other people)
Get upto 25% discount on hospitalization
Get easy access to your funds to meet hospitalization expenses at any time (Even on weekends)
Avoid redemption hassles during emergency situations
This facility is available irrespective of health insurance status.
WF: How will features like medical discounts, 24X7 doctor access and second opinion work?
Raghav: Investors can call on +91 80 49101010, and the doctors empanelled with Vidal Healthcare will address any basic health-related queries that you may have. Investors can also call on this number to avail discounts, get advice on suitable hospitals and contact specialists for a second opinion.
WF: What were the consumer insights that led to the introduction of Medical Advantage Feature?
Raghav: Investors generally invest for many other financial goals, but hardly consider investing to meet unforeseen healthcare expenses. Though the cost of medical expenses has increased manifold over the years, we found that most people still choose to pay for health-related expenses from traditional savings.
Rise in Medical Costs
Source: Cardiology Society of India
Source: Vidal Healthcare
Source: Vidal Healthcare
Many people keep cash at home fearing a medical emergency. As this cash lies idle, it loses its value over time.
Source: Government Sponsored Health Insurance - Are you covered? Gerard La Forgia and Somil Nagpal; World Bank 2012, Table 3.1
Through the Medical Advantage Feature, we would like to enable our investors to invest their money and at the same time offer liquidity in case of any medical emergency.
WF: How can investors avail this feature?
Raghav: Investors can enrol in this feature in 8 easy steps:
WF: What is the coverage of medical centres for availing the cashless facility?
Raghav: Currently, this feature allows you to access 6,000 hospitals 1,500 diagnostic centres, in addition to doctors, specialists, counsellors, nutritionists and medical trainers across 800 cities in India.
WF: What is the minimum amount to be maintained to avail the cashless service?
Raghav: Investors do not need to maintain a minimum balance specifically for this feature. However, the minimum amount required to open a fresh folio in the ICICI Prudential Savings Fund, which offers this feature, is Rs. 5,000.
The benefits of this feature are also limited to the amount that the investor has in the portfolio. For example, if the hospital bill comes to Rs. 1,00,000 and the investor has Rs. 50,000 in his portfolio, he or she can only pay up to Rs. 50,000 from the portfolio. The rest of the amount will have to be paid through other means.
WF: Is there a maximum limit to which a cashless facility can be availed?
Raghav: The facility is limited to the amount in the investor's portfolio. In case the hospital bill is greater than the amount in the investor's portfolio, the investor will have to make arrangements to pay the bill from other sources.
WF: In what ways does this cashless facility differ from what is offered along with health insurance policies?
Raghav: The Medical Advantage Feature can be availed by anyone by simply opening a new folio in the ICICI Prudential Savings Fund. This feature enables investors to meet expenses of any kind of medical need.
The Medical Advantage Feature, directly pays health-related expenses through the investor's investment in ICICI Prudential Savings Fund. While in case of insurance policies the payments are dependent upon the insurance cover.
The Medical Advantage Feature seeks to complement the investor's insurance policy.
WF: Are there any additional costs to be borne for availing this facility?
Raghav: No, there are no additional costs to be borne for availing this facility.
WF: How should distributors position this innovative solution?
Raghav: This health-care benefit provided along with existing features of the mutual fund is path-breaking in the financial market and could help them acquire more investors. It will help them reach out to that segment of investors that pay for medical expenses through savings or equivalent instruments. This will also help to project mutual funds as an alternative to park money for medical needs.
Discount on hospital bills and coverage of this facility are subject to terms and conditions. Please refer application form of this facility for the same.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Terms and Conditions of the Medical Advantage Feature are mentioned in the application form
The information contained in this communication is only for the reading/understanding of the registered Advisors/Distributors. All data/information used in the preparation of this communication is specific to a time and may or may not be relevant in future post issuance of this communication. ICICI Prudential Asset Management Company Limited (the AMC) takes no responsibility of updating any data/information in this communication from time to time. The AMC (including its affiliates), ICICI Prudential Mutual Fund (the Fund), ICICI Prudential Trust Limited (the Trust) and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this communication in any manner.
Nothing contained in this communication shall be construed to be an investment advice or an assurance of the benefits of investing in the any of the Schemes of the Fund. Recipient alone shall be fully responsible for any decision taken on the basis of this document.
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