Max India, a multiple business group with expertise in healthcare, and Bupa, the UK-based international healthcare company, on Thursday launched Max Bupa Health Insurance, a standalone health insurance company. While Max India holds 74 per cent stake in the company, Bupa would hold 26 per cent in the joint venture. The company will initially start operations in six cities namely Delhi, Mumbai, Bangalore, Chennai, Hyderabad and Pune.

The initial capital in the company would be Rs 151 crore, which it plans to increase up to Rs 750 crore in five years. To begin with, it will work with 381 hospitals across six cities, which the insurer plans to increase to 600 by next year.

The company hopes to see strong business growth through key service differentiators, such as direct servicing, where it will work without third-party administrators. The insurer will directly attend to all customer claims settlement and look after enrolment, maternity and child care benefits.

Analjit Singh, chairman, Max India, said that the insurer expects the company to break-even in the next five years. “We don’t plan to keep the premiums low, but for a higher cost, we promise our customers a lot more benefits and better servicing,” he added.

Damien Marmion, chief executive officer, Max Bupa Health Insurance, said, “Max Bupa wants to build a long-term relationship with customers and their families, and we will do this by understanding and addressing our customer’s needs better than anyone else.”

The company also announced the launch of its first product Heartbeat Health Insurance, which is an individual and family-focused health insurance product.