The Second Coronavirus Wave And Its Effect On Health Insurance Penetration In India

ByUday P Thakur

What with the continuing threat of the Coronavirus, the rise in monsoon-related infections and illnesses and a generally stagnant economy, year 2021 does not seem to hold bright prospects for most of us. However, if there is one lesson each of us has learnt from the recent horrors we have gone through, it is that we cannot take life and our health for granted.

The rise of COVID-specific health insurance

The year 2020 will forever be marked as a black one in modern history. What was being seen as the year of promise and success for global economies, quickly escalated into the most chaotic one ever with the advent of the Coronavirus. As the virus spread from China to around the world, it had every country in a vice-like grip. Millions passed away around the world, several others recovered but suffered serious side-effects of the illness. Meanwhile, the hunt began for a vaccine and drugs to suppress the virus’s symptoms, if not cure the virus itself.

Today, there are vaccines being offered all around the world. India, too, has two vaccines being given to the general population as per age (under-18 persons are not being vaccinated yet). However, the menace of the virus is far from over. The country is currently grappling with an unprecedented second wave of the virus which has claimed lakhs of lives already. A third wave is imminent.

With this backdrop, health insurance providers in India rolled out two Coronavirus-specific health plans. These plans, the Corona Kavach and Corona Rakshak plans, were offered from June 2020 to all Indians, to cover the costs of hospitalisation for severe Corona symptoms. The Corona Kavach plan is offered to both individuals and families, while the Corona Rakshak policy only offers individual coverage.

The rise in insurance purchase and claims

Meanwhile, rising cases of the Coronavirus, the high costs of treating it at private hospitals in India, the rise in other illnesses related to stress, overweight, inactivity due to WFH modes, wrong diet, chronic illnesses, etc…these formed the basis of most people training their sights on getting good health insurance plans in India for themselves and their loved ones.

The pandemic and its effects notwithstanding, it is a time of great uncertainty for us all. This has given rise to a host of new health problems, most of them being lifestyle diseases brought on by a change in our daily routines. With people fearing future illnesses and not being able to pay for them from their incomes, there has been an exponential rise in the inquiries for health insurance plans. There was also a corresponding rise in the number of new health plan purchases, both regular health plans and Coronavirus-specific ones.

It helped that high value plans like the Arogya Sanjeevani policy were launched last year, to offer a sum assured of up to Rs 10 lakh and a wide range of coverage including day care procedures requiring hospitalisation. This is a standard health insurance plan in India that is easy to understand and purchase.

How to buy a good health insurance plan in India

  • Check out the health policies of leading insurance providers in India. They have a wide range of plans with different price points (as regards premiums), benefits and beneficial riders.
  • Decide if you wish to buy a Coranavirus-related plan as well as standard health insurance.
  • Another key consideration is whether you wish to include a critical illness rider in the plan, or buy a standalone critical illness policy. This is beneficial for those who fear paying the high costs of treating serious illnesses in the future, or who have a genetic/hereditary predisposition to diseases like diabetes, renal failure, hypertension, heart disease, certain cancers, etc. 
  • Check out the premiums payable vis-à-vis the benefits ingrained in the plan.
  • Choose a sum assured that accounts for future inflation and higher living costs. The sum assured should be an amount equal to or exceeding 10 times your current annual income. You may get an enhancement on the coverage during future policy renewals.
  • Buy the policy online as directed by uploading the relevant documents. You may need to undergo a health check-up (arranged for by the insurer) before the policy is deemed purchased