Covid 2nd wave likely to fuel health insurance growth
Customers opting more for Covid insurance policies than health insurance as the former is cheaper with lower premium: Experts
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New Delhi: With surge in cases of Covid across the country, health insurance experts believe that the probability of a second wave or lockdown would subsequently lead to surge in Covid insurance policies as well.
Industry experts told Bizz Buzz that since the beginning of 2021, the number of people applying for health insurance or Covid insurance has gone down drastically in comparison to 2020.
"A lot of customers, in the last year, went in for group policies (Covid health insurance). There was a surge in buying of retailed policies as well. I see that trend reaching its peak till Diwali last year, after which there has been a dip in Covid and health policy sales. The trend is now almost dying down in the past two months. We are on the verge of another wave which may hit us somewhere in April and that time we will see surge of people buying health insurance policies or Covid policies," Dr Abhitabh Gupta, CEO, Good Health Insurance TPA, told Bizz Buzz.
Dr Gupta also highlighted the fact that customers are opting more for Covid insurance policies than health insurance as the former is cheaper with lower premium. Health Insurers, debunking the myth that Covid survivors may face difficulty in purchasing health or life insurance policies, said that the screening process pre-and post Covid remains the same. However, with Covid survivors having underlying symptoms may be subjected to additional medical tests, he added.
"If somebody has had Covid, then renewal for existing customers will happen as it is. But, if a person wants to go for new insurance, what insurer is going to look at it again any pre-existing disease prior to buying the policy. So, the same fundamentals will apply for people who have had covid and people who haven't contracted it yet. For retail customer, in case he has had Covid, and there are some symptoms which are still existing, then he is going to have challenges in getting a policy," Dr Gupta explained.
Lok Sabha MP from Chevalla in Telangana G Ranjith Reddy, earlier this month, had raised question in the Parliament, whether Covid survivors may face rejection or hurdles for getting their life insurance cover and whether it is true that Covid survivors are going to be treated at par with co-morbidities and would be charged extra premium.
Another health and life insurance expert, on the condition of anonymity said that surge in certain States won't be a deterrent factor in insurance policy sales but age factor might prevent some from getting health insurance. "Assuming a heart patient or one suffering from lifestyle disease such as diabetes, have survived Covid, then this could impact comorbidity aspect i.e., pre-existing medical conditions. So, insurance companies may be a deterrent to take them on-board immediately. Age group definitely can play a bigger part on getting Life or Health insurance but not state of domicile," the insurance expert said.
According to insurers, the life insurance and health insurance premiums of some insurers will go up from April 1, 2021, with no relation to Covid aspects whatsoever.
