Tata AIG launches 'Health First' plan

Company press release, August 13, 2003

Mumbai

Tata AIG Life Insurance Company today announced the launch of Tata AIG 'HealthFirst', a unique Health Insurance Plan with life cover. Tata AIG 'HealthFirst' is India's first comprehensive Health Insurance plan that provides a complete cover for prolonged hospitalization, including a major surgery or a critical illness.

One of the unique feature of this policy is that a lump sum allowance is paid irrespective of the actual medical / hospitalization expenses. Thus enabling the insured to pay for all medical, hospitalization and also all allied expenditures that add up to a considerable amount. The other innovative feature of this policy is that it is renewable till age 65 without any further medical examination with premiums increasing only once every five years. Further, Tata AIG 'HealthFirst' can be claimed simultaneously with the existing medical insurance policies.

Additionally a Tata AIG 'HealthFirst' policyholder can make multiple claims till his lifetime cover is exhausted. It also has an in-built death cover, which is paid in the unfortunate event of death of the policyholder

To speed up the claim process Tata AIG has tied-up with Paramount Health Care, to avail its services as a TPA (Third Party Administration). Tata AIG 'HealthFirst' plan holder can go to any of the 280 hospitals that are part of the list of approved hospitals.

Speaking on the launch of Tata AIG 'Health First', Mr. Ian Watts, Managing Director, Tata AIG Life Insurance Company Limited, said, We are delighted to announce the launch of Tata AIG 'HealthFirst', our unique health insurance plan that also offers a life insurance cover. We constantly strive to offer innovative insurance products that meet the needs of the Indian consumer. Tata AIG 'HealthFirst' has been designed keeping in mind the difficulties faced by Indians while meeting the high medical and hospitalization costs. We are confident that Tata AIG 'HealthFirst' will make life more comfortable for the insured and also that of his family while settling their medical expenses.

Keeping the convenience and affordability of Indian consumers in mind, Tata AIG 'Health First' can be bought in number of units. The amount of coverage for each of the six benefits that Tata AIG 'HealthFirst' offers is predefined for a single unit. Policyholders have the option of buying between one to ten units, depending on their individual requirement.

The benefits offered by Tata AIG Life Insurance Company under Tata AIG 'Health First' are:

· Hospital Cash Allowance: During hospitalization, the plan provides policy holders with an allowance of up to Rs.2,500 per day, depending on the number of units purchased. This allowance is available only after the first three days of hospitalization for a maximum of 90 days.

· Surgical Benefit: For a surgical procedure covered under the plan, a maximum lump sum amount of Rs.1,25,000 is provided. The complete amount of the allowance is paid even if the cost of the operation is just Rs.10,000. This benefit is in addition to the hospital cash allowance. The remaining allowance can be used for any other cost that the policyholder may have incurred.

· Critical Illness Cover: Under this plan, a collective amount of up to Rs.12,50,000 is payable to the insured. Policyholders can not only avail the best available treatment, but can also pay for other related costs.

· Post-hospitalization Benefit: The plan provides for a payment of up to Rs.1250 per day for a maximum of three days to cover follow-up treatment post-hospitalization.

· Lifetime Maximum Cover: Multiple claims can be made up to a maximum of Rs. 25 lakhs (for 10 units) in the tenure of this policy.

· Death Cover: In the unfortunate event of death of the policyholder, coverage of up to Rs.10, 000 is provided.

Tata AIG

Tata AIG Life Insurance Company Ltd. and Tata AIG General Insurance Company Ltd. (collectively Tata AIG) are joint venture companies, formed from the Tata group and American International Group, Inc. (AIG). Tata AIG combines the power and integrity of the Tata Group with AIG's international expertise and financial strength Tata Group holds 74 per cent stake in the two insurance ventures with AIG holding the balance 26 per cent stake.

Tata AIG Life Insurance Company Ltd. provides insurance solutions to individuals and corporates. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001. Tata AIG Life offers a broad array of life insurance coverage to both individuals and groups, providing various types of add-ons and options on basic life products to give consumers flexibility and choice.

The non-life insurance arm, Tata AIG General Insurance Company, which started its operations in India on January 22, 2001 offers the complete range of insurance for automobile, home, personal accident, travel, energy, marine, property and casualty, as well as several specialized financial lines.

Tata AIG Life Insurance Company offers products in Ahmedabad, Bangalore, Chandigarh, Chennai, Guwhati, Hyderabad, Jaipur, Jamshedpur, Kochi, Kolkata, Mangalore, Mumbai, New Delhi, Pune, Rajkot, Trichi, and Vijaywada.

Tata AIG General Insurance Company offers products in Mumbai, Chennai, Bangalore, Kolkata, Chandigarh, Hyderabad, Delhi, Pune, Ahmedabad, Jamshedpur and Guwahati.

The Tata Group

The Tata Group is one of the most respected industrial conglomerates in India, with revenues of more than US $10 billion. The Group has long been a market leader in steel, commercial vehicles, electric power generation in the private sector and computer software. In recent times, it has promoted several new ventures in high growth areas in the economy such as, telecommunications, insurance, auto components, retail and enlarged its presence in high potential areas like information technology

AIG Inc

American International Group, Inc. (AIG) is the world's leading international insurance and financial services organization, with operations in approximately 130 countries and jurisdictions. AIG member companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer.

In the United States, AIG companies are the largest underwriters of commercial and industrial insurance, and AIG American General is a top-ranked life insurer. AIG's global businesses also include financial services, retirement savings and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making.

AIG's growing global consumer finance business is led in the United States by American General Finance. AIG also has one of the largest U.S. retirement savings businesses through AIG SunAmerica and AIG VALIC, and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed in the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

For further information please contact:

Sujata Dutta

Tel: 022-5693-0000

Fax: 91-22-2830- 5888