Growth is expected to come not only from rise in demand for health insurance and related products in the next two years, but also through the possibility of running the Central Government Health Schemes (CGHS) and various state government health schemes. According to Banerjee, CGHS and few state governments have approached GIC to take over their health schemes and run them owing to inadquate resources at their disposal. GIC has offered them a proposal comprising their existing schemes, which is under consideration, Banerjee said.

These are all part of the strategy to compete with private players, and cope with challenges with the opening up of the sector. GIC and its four subsidiaries have started making their moves. They have got approval to set up a management service company exclusively for health and medical insurance schemes. The company is expected to begin operations from Mumbai from the first quarter of 2000.

"GIC will play a major role in the managed care sector, and wants to emerge as the most-preferred managed care provider," says Banerjee. Managed care will integrate financing and delivery of healthcare. It is a specialised type of business requiring high technical skills in terms of marketing, administration, and information technology resources.

Though GIC is entering the managed care sector, Banerjee says there are no plans to do away with the exisiting Mediclaim policy which covers over two million holders.