Star Health Partners with PhonePe to provide insurance with monthly EMI options

Star Health and Allied Insurance Company Ltd. on Wednesday said, in an exchange filing, that it has entered into a strategic partnership with PhonePe.

The company explained that under the partnership, Star Health’s Comprehensive Health Insurance Policy will be available with a monthly and annual payment option exclusively on the PhonePe app, with coverage up to ₹1 crore. Apart from this, users can also choose to pay their premium with the UPI Auto Pay mandate with a monthly EMI option.

The move comes at a time when medical inflation has risen significantly and people’s ability to go for extensive coverage has diminished given the relative rise in premiums. Star Health indicated that this move was driven by a critical insight that smaller monthly payments ease the financial burden for users while enabling them to opt for more extensive insurance coverage without stretching their finances.

Anand Roy, MD and CEO of Star Health Insurance, said that the partnership between both the firms will provide consumers with a hassle-free payment option that is light on the pocket and at the same time meets their wellness needs.

How it works

-Users can purchase the policy via the PhonePe app by clicking on the Health Insurance option, selecting the members to be insured, the desired sum to be insured and the payment tenure.

-Here, they can choose either monthly EMIs or annual payments and then select the Star Comprehensive Insurance policy.

-Once they opt for the policy, the customers need to fill in their details, such as name, age, and gender, followed by the health history of all members to be insured.

-This will be followed by the regulator mandated Know Your Customer (KYC) form and declarations, once the payment is completed.

Shares of Star Health rose 1.5% in early trade but gave up their gains later to close flat.