Private equity firm Sequoia Capital would be putting in Rs 165 crore in Chennai-based standalone health insurer Star Health and Allied Insurance Company. Meanwhile ICICI Ventures would be putting in further Rs 20 crore, a top official said.

ICICI Ventures had recently infused Rs 100 crore into the company, which is the country’s first stand-alone health insurer.

V Jagannathan, chairman and managing director of Star Health, said ICICI Venture would infuse another Rs 20 crore in the coming months, while funds from Sequoia would come in another 15 days.

With this equity infusion, Star Health’s paid up capital would go to Rs 365 crore. However, he refused to disclose the equity dilution to the two private equity firms.

The company has earned premium income of Rs 575 crore so far in this financial year and expects to end the year with premium income of at least Rs 1,350 crore. It had a premium income of Rs 975 crore in 2010.

Meanwhile, the company has also launched the country's first health cum life insurance product in partnership with private life insurer Shriram Life Insurance Company.

“We felt there are very limited combi plans in the market. A policy combining life and health was the need of the hour and we thought it was an ideal time to launch such a plan. We hope to get good response for the product and have already received 100 proposals,” Jagannathan added.

Star Health started its operations in 2006 and is focused only on health insurance. Last year, it earned a premium income of Rs 975 and a pre-tax profit of Rs 15 crore. It aims to be profitable this year as well.

The company expects around Rs 900 crore from two state sponsored health schemes in Tamil Nadu and Andhra Pradesh. The company has bagged contracts from these two state governments to implement state sponsored health insurance scheme, which would cover people who are living under below poverty line.

As part of expansion plan, the company is planning to increase number of branches to 200 from 160.