Page 44 - The Insurance Times October 2021

5 HEALTH INSURANCE

LESSONS FROM THE

COVID PANDEMIC

C ovid-19 has shaken up the world in more ways than multiple floater policies with each covering different family

members to ensure that enough cover is there for everyone,"
one. As we all try to adapt to a new normal in the
says Chenthil Iyer, a Sebi-registered investment adviser.
aftermath of this health crisis, it is important to
ask ourselves: Is my health insurance adequate?
This may also help reduce the premium outflow since it is
This is a very pertinent question to ask because we have all calculated on the basis of the eldest member in the group.
heard horror stories of how hospitalization costs of more than
Consider co-pay and room rent limits: Health insurance policies
one family member infected by covid-19 has meant that a
come with co-pay and room rent limits. “Both mean you could
family has had to dip into their life’s savings to meet those
end up paying part of the healthcare expense in a situation
costs, because the health insurance coverage was not enough.
where you need to make a claim on your insurance policy,"
Against this backdrop, here are five important health says Mayank Kale, chief executive officer and founder, Loop
insurance lessons to learn from the pandemic. Health. Policies come with these features to lower premium.
“Though it may cost you some extra premium, it is better to
Ensure adequate sum assured: The pandemic has taught
go for policies without any sub-limits and co-payment so that
us how important it is to have adequate health coverage.
“With medical inflation rising by more than 50%, i.e. from you wouldn’t have to think too much about arranging for
4.39% in 2017-18 to 7.14% in 2018-19, people are slowly money by liquidating investments if and when such an event
getting their minds around the fact that a health cover of ?5 happens. The peace of mind is well worth the additional cost,"
lakh- ?10 lakh is inadequate," says Amit Chhabra, head - says Iyer.
health insurance, Policybazaar.com. Therefore, he advises Avoid covid-19 specific policies: There are several covid-19
to go for higher cover policies. Just by paying 20% more, you specific policies available in the market. However, it is
get 10 times more coverage than your regular plan, with important to remember that covid is not an exclusion in any
additional benefits and features. health policy and is hence covered without exemption. If you
Also, as more and more customers are inclined to buy health have adequate health insurance, a specific covid-19 policy is
insurance with a high sum insured amid the ongoing not recommended. “It is better to go for a comprehensive
pandemic, the payment of premiums on EMI option is now health insurance policy with a higher cover, as covid is now
available on these plans. “With the flexibility to pay the bringing along a lot of other diseases also which a covid
premium in instalments, it becomes more accessible and specific policy will not cover," says Chhabra.
affordable for customers," says Chhabra. Do not depend on employee cover: People rely on very

Review floater policies: The chance of more than one small coverage offered by employers. This is not a good idea,
member of the family falling ill simultaneously means that and everyone should maintain their own health insurance
existing floater policies may not be enough. “If you go for a policy alongside. “A pandemic comes with the risk of losing
floater policy, the overall sum assured should be high enough one’s job as well and in such a circumstance, if one relies only
to accommodate multiple members of the same family falling on employer’s insurance, it may result in zero coverage when
ill simultaneously. Alternatively, one may also purchase the disease hits you," says Iyer. (Source: Mint)

44 The Insurance Times, October 2021