GIC chairman D Sengupta confirmed that the board, which met on Thursday, had approved the plan. The new management-service company will have an equity capital of Rs 25 crore, of which 50 per cent will be contributed by GIC and its subsidiaries. The corporation is also scouting about for other partners including those in the private sector. The board has, however, decided against any form of foreign partcipation. The strategy for the new operation has been chalked out by KPMG and will be implemented within six months.

Managed healthcare is a new concept in domestic market and will meet the medical needs of all sections of the society. "The introduction of such a scheme dealing with comprehensive health care is long overdue and I am happyabout the beginning", Segupta said. The general insurance companies will launch these new range of services along with the existing `Mediclaim' policy. Both individual and institutions will be covered under this health insurance plan.

"The scheme needs a lot of basic level infrastructure and networking among doctors, hospitals, clinics and medical shops", said GIC sources, adding, "the basic strategy to launch this scheme involves floating a new marketing company which will be preparing overall framework of products, pricing, database and research and development activities".

Any of the existing GIC subsidiaries can underwrite a policy, which will be recorded against their names jointly. The premium collected by the companies will be deposited in the name of the new company which is to be shared equally by them at the end of the year. The claim will be met from the common reserve, which is to be set up for the purpose. Further, the GIC board has also allowed individual subsidiaries to undertake businessof their own, if they so want.

Insurance secretary BK Chaturvedi had to convince chiefs of GIC's subsidiaries about the need for a special company to oversee the implementation of such a scheme, which needs continuous follow-up of necessary arrangments. The subsidiaries, which are underwriting around 150 products may not find time to implement such a scheme.

"Initially, the programme will be implemented on a pilot-basis in four or five metropolises, which will be extended to other parts of the country gradually. Mumbai and Delhi will be the starting centre for launching the scheme" said sources.

The new company will be having a chief executive officer of its own and rope in a number of doctors as consultants at the operational level. At present, the four subsidiaries have issued 20 lakh policies with a total premium of Rs 120 crore.