The Effect of COVID-19 on Health Insurance Plans in India
Insurance companies have a pivotal role to play during times of economic stress in a country. By helping the companies and individuals manage COVID-19 risks and providing a cushion against losses, health insurance companies can support economies.
Also, policies like health and life insurance are not just for benefit but a kind of necessity in these times of pandemic. It is deemed that most individuals are inclined towards getting a risk cover in Corona times.
The effect of COVID-19 on health insurance plans in India
COVID-19 has shaken the world right from the start of the year. Over and above the drastic changes in our lifestyles, the global pandemic has brought to light the importance of precaution. People all over the world have become more sensitive about their health.
With all this growing awareness, India too has seen a rise in people opting for health insurance plans. Health insurance and life insurance are not just a benefit but a necessity in these testing times.
Awareness about health insurance plans in India have risen among the populace. According to a survey, 50% of the respondents have said that having an insurance cover is important and 80% of them are aware of the benefits of having insurance during a pandemic.
Even people having control of their financial health are highly worried about the risk to their and their family’s life. Hence, the perception of the vitality of health and life insurance is now greater than ever.
Common benefits you can avail from health insurance plans in India
Almost every insurance company is extending the coronavirus in their health insurance plans. This was directed by the Insurance and Regulatory Authority of India. Meaning, if you already have an indemnity health plan, your insurer will incur all your hospitalisation and treatment costs.
Following are some common benefits you can avail from your health insurance plan:
- Pre and post-hospitalization expenses
- Ambulance charges are covered
- No capping limit on room rent in the hospital
- Cashless and reimbursement claim processes
- Confirmatory test charges are covered as a part of hospitalization expenses
- Quarantine charges are covered if the treatment is carried out at a registered medical facility
The importance of insurance sectors in the development of a nation
The Coronavirus pandemic has brought to fore the importance of the insurance sector. The sector has a big role to play in the development of a nation. The sector can help build the economic resilience of businesses and individuals.
In April 2020, almost a third of the global population was under lockdown. Businesses not operating in essential services have been told to temporarily close down as a part of lockdown measures. The micro-, small-, and medium-sized enterprises were hit the hardest due to lockdown. In the absence of adequate reserves, insurance solutions, or easy credit access, many MSMEs were forced to lay off workers or close down permanently. This has devastating effects on the welfare of individuals at scale.
The increasing financial difficulties caused by COVID-19 on individuals, businesses and economy of the country have highlighted the criticality of having a developed insurance market. Insurance plans like critical illness insurance and personal accident insurance have also been noticed by the populace, along with health insurance plans in India.
Here is why this is the best time to buy a health insurance plan in India
You should be purchasing a health insurance plan in India right now if you don’t have it already. Below are some reasons why.
- Lack of liquid assets: A record-high rate of unemployment is seen across the country. The unemployment has caused a cash crunch that has lead to budgeting of non-essential expenditures. An increasing concern is seen around hospital bills and treatment expenditure in case of an unfortunate event of hospitalization. Hence, the lack of liquid assets is a stressful trigger that has been pushing more and more people to opt for health and life insurance plans.
- Property and land safety: The first half of 2020 saw the wrath of natural calamities like earthquakes and cyclones in various parts of the world. The wrath served as a warning to the people to secure their homes and properties with an insurance cover. A property insurance plan protects your home from any natural calamity.
- Single coverage plan for a family: To balance between demand and supply of health services, an exponential rise is seen in the costs of health care. Families stuck in quarantine are opting for family floater plans to enhance affordability. Unlike an individual cover, a family floater plan allows the sum insured to be shared between the family members. If one family member is hospitalized and a chunk of the sum insured is used up, the balance can still be used for the remaining members. Personal accident insurance and critical illness insurance are also two great insurance plan choices.
Conclusion
An increase in awareness of insurance products will increase the likelihood of insurers to offer products at lower premiums. However, in a slowing down economy, we may see an increase in the premium rates. Nevertheless, this is an amazing opportunity to secure your financial future by opting for the right health insurance plans.
