Lessons to be taught from first wave of COVID-19 pandemic

Written by Tarun Mathur
The second wave of the continued COVID-19 pandemic continues to batter India in a approach like by no means earlier than because the nation continues to report over 1.80 Lakh COVID-19 optimistic instances and near 1,000 deaths each day for the final 10-days. Despite the federal government’s rising sense of foreboding, the second wave of coronavirus has engulfed India in such a fashion that every day marks a contemporary grim COVID-19 milestone.
After a sudden fall within the variety of optimistic instances from November – January, the nation has as soon as once more outstripped Brazil to turn out to be the second-worst affected nation globally. What is extra regarding is the truth that this very time, youthful individuals between 20 and 45 – probably the most economically productive age group in India – are getting significantly affected and are being hospitalised with extreme signs. Unfortunately, the second wave of the continued pandemic is hitting India’s workforce laborious.
Learning from the previous
Within the primary six months of the COVID-19 pandemic in India, the queries for each life and medical insurance shot up by 100 per cent compared to final yr. While a number of business specialists related this huge progress to a rise in consciousness across the significance of insurance coverage for monetary safety towards the pandemic, many even remarked it as ‘panic-buying.
Numerous individuals purchased a time period or medical insurance coverage fearing they may get contaminated with the virus anytime and may have hospitalisation or in all probability even die if the circumstances worsen. This panic state of affairs left individuals to purchase merchandise which will show to be insufficient if the necessity arises. While the intent – constructing a monetary blanket – was proper, the selection of coverage, protection quantity, or tenure might not be ample.
There have been a number of incidences the place clients fell wanting the sum insured throughout hospitalisation because of COVID-19 and the relations needed to borrow cash from pals or break into the financial savings to pay the remaining hospital payments.
In sure instances, the dependents of the time period insurance coverage policyholders discovered the sum assured/protection quantity considerably much less which was not even sufficient to pay for day by day bills. And, with the pandemic state of affairs getting worse this yr, it’s feared that individuals may not simply observe go well with and purchase insurance coverage that even fail to ship their core function – enough monetary safety on the time want.
It is vital that individuals should be taught from the error of others! One vital factor that clients should know earlier than shopping for any insurance coverage coverage is that insurance coverage is a one-time buy that should be purchased with utmost consideration to avail its most advantages on the time of want.
Term Life Insurance
While it’s good that individuals purchased insurance coverage in elevated numbers, it’s equally vital to purchase the proper merchandise that exactly cater to your particular wants and necessities. Talking about time period life insurance coverage, given the severity of the virus, it is rather vital that you just cowl your self below a time period insurance coverage plan, particularly in case you are the only real breadwinner of the household.
While deciding on the sum assured, there are a plethora of issues that you should give due consideration like your annual earnings, household’s month-to-month bills, loans, if any and one-time bills like little one’s schooling, marriage and partner’s retirement. Ideally, the sum assured of your time period insurance coverage plan should be 20 – 25 occasions your annual earnings whereas the coverage tenure should be till your retirement age – largely between 60 – 65 years.
Another vital factor that should draw your consideration is Claim Settlement Ratio – the entire variety of claims settled of the entire claims acquired. Always go together with the insurer that has the next declare settlement ratio but gives time period plans at reasonably priced premiums.
Health Insurance
Yet one other main insurance coverage cowl that you just want throughout unprecedented occasions like these is medical insurance. The insurance coverage penetration stage of medical insurance in the course of the first wave of the COVID-19 pandemic was outstanding as IRDAI reported that the entire variety of lives lined below medical insurance grew from 17.83 Crore throughout April – September 2019 to 30.22 Crore throughout the identical interval in 2020 – highlighting progress of 69.8 per cent.
While it’s good that an increasing number of individuals invested in medical insurance, additionally it is vital to purchase the proper plan. When shopping for a well being cowl, the foremost factor to do is purchase a plan with larger protection/sum insured largely Rs 1 crore. A better sum insured plan guarantees uninterrupted protection irrespective of how massive is the remedy value.
Higher sum insured plans additionally gives an array of further advantages comparable to zero co-payment, no room-rent capping or sub-limits on totally different procedures and protection for telemedicine – which may be very a lot in want contemplating the speed at which the virus is spreading. These plans have turn out to be all of the extra reasonably priced as now you’ll be able to simply purchase such insurance policies in month-to-month installments.
Motor Insurance
As COVID-19 optimistic instances proceed to rise every day, many states have once more began to implement partial lockdown and restrictions to restrict the motion of individuals and include the unfold of coronavirus. And, with workplaces nonetheless shut in most cities and most individuals working house, the usage of personal automobiles is nearly negligible.
During such occasions, when automobiles are hardly operating on roads, there isn’t a level spending further to purchase a complete motor insurance coverage plan when you’ll be able to nonetheless handle with restricted protection. To present required protection and assist clients save on motor insurance coverage premiums, insurers have provide you with insurance coverage that present solely required protection – Third-party + Fire + Theft insurance coverage plan. The plan guarantees enough protection towards damages out of your car to 3rd celebration and damages to your car because of fireplace and theft. These plans can be found at a 50 per cent decrease premium than common/complete plans.
 
The creator is CBO at Policybazaar.com. Views expressed are that of the creator.