Pandemic Pushes Sale of 1 Crore Health Insurance Cover
Published On May 07, 2021 12:00 PM By Kanika Wadhwa
Due to the COVID-19 pandemic, many people are becoming more concerned about their health. India stands as one of the worst hit countries owing to the novel coronavirus. As a result, this has led to an increased demand for health insurance plans considerably amongst the masses. Individuals are now worried about the consequence of the pandemic on both their pockets as well as health and are therefore looking forward to spending on their health care.
The insurance companies are upselling health insurance covers to the policy proposers by skewing the costs in favour of high value health insurance covers. A health insurance plan worth Rs 1 crore is now available for a 30 year old for as low as Rs 18000. Hence resultantly, a third of all health insurance premiums is not attained by the insurance companies from selling the high value insurance plans.
From Rs 1-25 Lakh segment, the experience of high claims have been high. So basically, the rate of premiums shot up there by 50-100 percent. And since segment of Rs 25 Lakh-1 Crore is fairly new, premium rates are low, an indirect cross subsidy gain, stated Biresh Giri, appointed CRO and actuary, Acko insurance. Insurance providers are saying that the concept of Rs 1 Crore insurance plan began first with life insurance, and talking about the health insurance industry, it is a recent pandemic-induced pattern. With a rough estimate, a family of three, consisting of the couple and a child will be required to pay Rs 25,000-Rs. 35,000 for sum insured amount ranging between Rs 25 Lakh- 1 Crore, and an individual may be able to pay as less as Rs 18,000 yearly.
In a specific age bracket, payment for premiums paid for high sum insured plans ranges between 10-15% higher than Rs 1 – 25 Lakh bracket, making them attractive and affordable. Due to the increase in demand, more such goods of the similar category are being launched and it has also led to migration or new sales to those insurance policies.
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The pandemic has made each one of us realize the importance of healthcare, especially after taking into consideration the uncertainty of the future. Since, healthcare emergencies can arise at any place any time, it is wise to buy a health plan and protect us and our families from any unforeseen medical emergency.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.