Insurers face massive rise in non-COVID-19 claims in July, but health coverage still low

Despite a rise in claims in the last two months, the insurance penetration in the country still seems to be low. Health insurance claims made till now are only 2.7 per cent of the total number of people who have been infected with the virus till now. While it is important to follow all government advisories to protect yourself physically from getting infected with the coronavirus, it is also very important to stay financially protected against not just the pandemic, but all other ailments as well. This is because the COVID-19 pandemic may end in a couple of more months, but other lifestyle diseases and age-related ailments can affect 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 help 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 two hours of the claim request.

Choose a plan at the right cost

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 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.

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 opt for a comprehensive health cover at affordable prices.