Narayana Health, one of India’s leading hospital chains, said it has been in discussions with insurance regulator the Insurance Regulatory and Development Authority of India (IRDAI) to sell a bundled health insurance package that proposes to offer comprehensive care from outpatient consultations to ordering medicines, to health check-ups, diet, physiotherapy and surgeries.

In an interview to ET, Viren Shetty, executive vice-chairman of Bengaluru-based Narayana Health said the insurance business won’t be capital intensive and would be targeting the “missing middle” – the 40% of Indians who are left out of the government health insurances schemes like Ayushman Bharat or can’t afford healthcare like 10% affluent segment.

For its insurance foray, Narayana Health incorporated a wholly owned subsidiary called Narayana Health Integrated Care (NHIC) and has undertaken a slump sale to transfer its existing clinic assets.

It set aside ₹50 crore for the new venture, which is currently being rolled out on a pilot phase in Bengaluru. It has roped in Ravi Vishwanath, a seasoned insurance industry executive, to build the insurance business.

Shetty said based on the progress of the pilot in Bengaluru, they would add more clinics and expand services to the rest of Karnataka and Kolkata.

To be sure, Narayana isn’t the first hospital chain to get into health insurance. “The existing health insurance system operates on a fee-for-service model, and is not designed to keep a person healthy, it is just a credit card which is to pay for your surgery,” Shetty said.Shetty said Narayana’s approach would be based on a managed care model where the company proposes to pay one flat amount to healthcare providers every month.

The clinics will provide a key role by providing primary and preventive care.