Vital raises USD 3 mn in funding led by BLinC Invest

Insurance technology platform Vital on Wednesday said it has raised USD 3 million (about Rs 21.9 crore) in funding, led by BLinC Invest.

Venture Catalyst, Survam Partners and several other angel investors also participated in the pre-series A round, according to a statement.

The company was established in 2020 by former co-founder of Truly Madly Rahul Kumar and health insurance industry expert Jayan Mathews.

The direct-to-consumer (D2C) health insurance platform has co-developed the insurance cover with Care Health Insurance and integrated with Mfine, Healthians, Thyrocare, 1Mg, BeatO, Fitterfly, Fitternity, Cult fit, and Betterlyf, for the wellness benefits.

''Unlike traditional health insurance, which is one size fits all with expensive annual premium and numerous terms and conditions, we at Vital are leveraging technology and data science to build more personalised experience with an integrated health and wellness approach and smarter product structuring to make the premiums much more affordable,'' Vital co-founder and CEO Rahul Kumar said.

He added that the company's goal is to manage health of customers with holistic wellness offerings and timely interventions to keep them from falling sick, which means lower claim costs and hence, lower overall premiums.

BLinC Invest founder and MD Amit Ratanpal said, ''The country presently has one of the lowest health insurance penetrations in the world and the existing health insurance plans are usually enveloped with innumerable terms and conditions, resulting in utter confusion around the coverage eligibility and ultimately a bad customer experience.'' He added that making healthcare cover fully digital, inclusive and affordable is a great way to solve the problem, and Vital is on a mission to do that.

As per the recent insurtech report by BLinC Invest, the Indian insurance industry has a market size of USD 106 billion, and life insurance accounts for 75 per cent of that.

Vital cited General Insurance Council data to state that almost Rs 24,000 crore worth of claims have been paid under medical insurance due to COVID-19-related hospitalisation and associated expenses.

Before the COVID-19 pandemic, about 32 per cent people purchased comprehensive insurance plans, while the same has now shot up to 55 per cent, it added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)