Bussiness Ideas

India approves health insurance claims within three hours. Hospitals wait 45 to 270 days to receive payment. In the gap, hospitals take overdraft facilities at 14 to 24 percent per annum. They are borrowing against money they have already earned on claims that are already approved. At any point in time, approximately Rs 50,000 crore of approved health insurance receivables sit on hospital balance sheets. These receivables have no access to regulated financial markets. The problem is concentrated among small and mid-size hospitals, where government and public insurer scheme revenue constitutes 30 to 50 percent of total revenue. For these hospitals, delayed payment is not a cash flow inconvenience. It is an existential threat. Three structural failures cause this problem. First, banks have no way to independently verify whether a claim is authentic, approved, unpaid, and unencumbered. Every transaction therefore carries a fraud and default risk premium. Second, banks price credit on the hospital's balance sheet rather than on the insurer's, despite insurers carrying a mandatory 150 percent solvency ratio under IRDAI regulation. Third, there is no regulated mechanism to legally assign a health insurance receivable to a financier. iCReDS addresses all three failures. It is a regulated marketplace where hospitals list approved claims, registered banks and NBFCs bid competitively, and the hospital receives funds within 24 to 48 hours. Risk is priced on the insurer, not the hospital. The financing is without recourse to the hospital and collateral-free. The target rate is sub-8 percent per annum.

Startup Teams

• 1 Umakanta Jena (Director)
• 2 BHARAT BHUSHAN ARORA (Founder)

Incubation Details

• Incubator Name
  Sharda Launchpad Federation
• Incubator Host Institution
  Sharda University
• State
  Uttar Pradesh
• City
  Gautam Buddha Nagar