In Kerala about 28 lakh families are covered under Rashtriya Swastya Bhima Yojana (RSBY). RSBY is a health insurance scheme sponsored by Union government and state government for the BPL families which covers five members of a family for the hospitalization benefit of upto Rs 30,000 per year.
Above Poverty Line (APL) families can also enroll in the scheme but for it they require to pay premiums.
RSBY is being implemented by Public sector general insurance company United India insurance in Kerala from 2009. Company in FY’11 has paid Rs 149 crore towards hospitalization claim whereas company has received Rs 79 crore as premium which is the loss of Rs 70 crore.
In order to reduce the loss company has increase the premium for the financial year 2011-12 but still company is expecting the loss of Rs 60 crore in the current fiscal. Company in four months has already given out claim of Rs 100 crore.