Insurers Witness a Rise in non-Coronavirus Claims After Lockdown – Insurance Penetration Still Remains Low

ArticleInsurers Witness a Rise in non-Coronavirus Claims After Lockdown – Insurance Penetration...


Insurers Witness a Rise in non-Coronavirus Claims After Lockdown – Insurance Penetration Still Remains Low

COVID-19 positive cases in India have surged past the 3.65 million figure, however, in the last few months a little more than 1 Lakh people have so far utilised their health insurance policy for the treatment of the novel coronavirus. According to numbers collated by insurance companies, approximately only 1,00,000 claims have come to insurers for a settlement involving a cumulative amount of Rs 1,644 crore — this works out to an incurred expenditure of Rs 1.64 lakh, on an average, per policyholder. The 1 Lakh claims when viewed against the over 3.65 million COVID-19 cases translate to just 2.7 per cent of the individuals who tested positive and had some kind of health insurance coverage.

On the other hand, general insurers and specialised health insurers are witnessing a steady rise in non-covid related health insurance claims as normalcy returns after the stringent lockdown is eased by the government. There has been a 64 per cent increase in July for such claims versus average claims in April, May and June. Of these claims, only 10 per cent are COVID-19 related claims. The rise in claims is mostly coming from elective procedures that were postponed on account of COVID-19 in the last few months. During the lockdown period, non-life insurers saw an almost 40 per cent drop in non-Covid claims. The claims are mainly for treatments of cancer, dialysis, cataract surgeries and cardiac treatments. 

Time to Prioritise Health Insurance

Despite a hike in claims in the last 2 months, the insurance penetration in the country still seems to be low, since the health insurance claims made till now are only 2.7 per cent of the total number of people who have caught the virus till now. While it is important to follow all government advised measures to protect yourself physically from getting infected with coronavirus infection, it is also very important to stay financially protected against not just the pandemic but all other ailments as well. And this because COVID-19 pandemic may end in a couple of more months, but other ailments like lifestyle diseases and age related ailments can attack you any time and it is very important to stay adequately protected against any such ailment. The only and most convenient way to stay financially protected is by buying an adequate health insurance policy.

Just like all other medical expenses for hospitalisation, if one gets hospitalised for treating coronavirus infection, the health insurance plan will come in rescue to safeguard medical expenses. Buying a health insurance plan not just for yourself but for your entire family is important to make sure your hospital admission and treatment expenses are covered seamlessly. Your health insurance policy will cover you for testing and the cost of treatment for the novel coronavirus and any other disease. On the directions of the Insurance Regulatory and Development Authority of India (IRDAI), all the general and specialised health insurers have been advised to process all claims related to COVID-19 within 2 hours of the claim request.

Choose a Plan as Per Your Pocket

In order to avail adequate coverage against all ailments including COVID-19, it is best advised to buy a comprehensive health insurance policy with a maximum sum insured. A regular health insurance policy with Rs. 10 Lakh sum insured for a 32-year-old individual costs anywhere between Rs. 7,000 – 9,000 annually. However, if you feel you cannot afford to pay the entire amount as a lump sum, you may choose to pay the premium in monthly or quarterly payments as per your own convenience. Amidst the ongoing COVID-19 outbreak, the Insurance Regulatory and Development Authority of India (IRDAI) has come out with a circular for minor modifications in policies filed by general and standalone health insurers. As per the circular, the regulator has allowed the payment of health insurance premiums in instalments. The plans with monthly instalment premium payment option will go live on prominent online insurance market place –’s website.  

However, considering the financial stress due to job losses, sales dip and pay cuts that most salaried professionals and businessmen are facing all across the nation due to the corona crises, on the direction of the IRDAI, insurers have come up with standard COVID-19 specific plans that provide adequate coverage against the novel coronavirus. These are short-term plans available for a period of 3.5 months, 6.5 months and 9.5 months with a sum insured ranging from Rs. 50,000 to Rs. 5,00,000.  You can buy these plans for now and later buy a comprehensive health cover at affordable prices.

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