Pension fund regulator PFRDA is now preparing to offer health insurance coverage to its investors along with their pension. It’s worth noting that PFRDA launched the “Health” platform in January this year. Under this scheme, a maximum of 30 percent of an investor’s pension amount can be set aside for medical expenses.
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Health Insurance Coverage: The central government is now preparing to provide health insurance cover along with pension to investors. PFRDA Chairman S. Raman said on Friday that three pension funds are working on introducing pension schemes offering health cover for the benefit of investors. These pension schemes can be offered either through tie-ups with health insurance companies or directly in collaboration with health service providers. Raman said that this initiative is being taken under the ‘Health’ pension scheme, which aims to make people aware about saving separately for medical needs.
What did the PFRDA Chairman say?
He said, “We want people to understand the importance of protecting themselves. We want people to save money in the Medical Pension Scheme. This amount will be dedicated solely to medical expenses.” It should be noted that the PFRDA launched the “Health” platform in January this year. Under this scheme, a maximum of 30 percent of an investor’s pension amount can be set aside for medical expenses.
Affordable Top-Up Cover from Health Insurance Companies
The head of the Pension Fund Regulatory and Development Authority (PFRDA) stated that the coming together of a large number of investors under the National Pension System (NPS) helps pension funds secure better deals. This could lead to cheaper top-up cover from health insurance companies and discounts on treatment from hospitals. He added that under this scheme, hospitals will receive payments immediately after a patient’s treatment, unlike the central government’s health scheme, which takes several months to receive payments. Raman said pension funds sponsored by ICICI, Axis and Tata are experimenting with offering such health coverage plans and ICICI will soon launch its product.
Plans to invest in gold and silver ETFs
He said that measures are being studied to maintain double-digit returns over the long term. To this end, there are plans to invest in project finance, real estate, alternative investment funds (AIFs), and limited investments in gold and silver ETFs. Acknowledging the low coverage of the NPS (around ₹1 crore), he said that discussions are ongoing with the National Payments Corporation of India (NPCI) to expand the investor base and accelerate digital onboarding. Raman also said that at least four banks or consortia have expressed interest in entering the pension fund business. These include Axis Bank, Union Bank of India, Indian Bank, and Star Daiichi Group.
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