Page 31 - The Insurance Times July 2020

The industry has done well to find an opportunity even in business interruption and supply disruptions. Liability risks
such a situation; however, it still depends heavily on offline also exist, especially in industries like health care, hospitality,
distribution which is bound to suffer. On top of it the market transportation, and retail. Businesses are well-advised to
crash could end up deterring new ULIP investors and some assess their risks and determine whether existing insurance
existing investors may take the exit. The prospects of coverage may help meet such exposures. Insurance products
industry getting back its momentum and will definitely exist for business interruption, supply chain losses, event
depend both upon the time that India takes to recover from cancellation, exposure liabilities, and workers compensation
both - (1) Coronavirus Crisis & (2) Market Crash. for job-related exposures. Business Interruption and supply
chain coverage, including Contingent Business Interruption,
In life insurance, low interest rates pose a risk to the will typically require a showing of property damage that gave
profitability of existing nonparticipating portfolios. Insurers' rise to the loss.
existing unit-linked insurance plan (ULIP) portfolio assets will
be mostly unaffected, as customers will likely bear the brunt General Insurance markets have restricted coverage for
of the impact. However, new ULIP books and insurers' bond pandemic diseases, including coronavirus, through exclusions
and equity investments will likely drag for the next few and sub-limited coverage and capping. If you feel you might
quarters. have already covered in your Mediclaim Policy coverage, it
is prudent to check the fine prints of your Health Insurance
As individuals may be bored sitting at home due to the Policies with the help of your agent/corporate agent/broker
Coronavirus outbreak and browsing things that they could who deal with your policy placement or may contact your
buy on e-commerce platforms. If yes, then considering he/ concerned insurer's dealing executives/staff for making
she could spare about Rs 7,000 (for age 30 years or below) queries relating to the scope of coverage of your existing
to Rs 12,000 (other age groups of 31 years and above), he/ Policies taken by you, or counsel to understand what kinds
she would be able to buy a Rs 50 lakh life term insurance of protections you have for these exposures. Fire and
product within minutes that gives him/her only gives security Aviation premium saw one of the biggest rise this year
part (but no maturity benefit) of cover in case illness & death however the given the fact that travel and tourism is the
of the assured. Amidst the COVID-19 pandemic, life sector which have been worst hit by this crisis.
insurance is necessary since risk of infection and mortality is
high and a vaccine is yet to be discovered.

While on a regular day, medical tests and several documents
would need to be submitted to buy a policy, insurers are
now waiving off medical tests and issuing policies after short
video interactions. Purchasing a life insurance cover which
is a must- have product for any individual with dependents
at home, may also turn out to be cheaper since you would
be buying directly from the insurers. This will cut down
commission costs. Yes, you could buy a policy online but
terms and conditions of a product are not always clear over
the internet and savings-led insurance does require a few Given the changes in motor insurance by IRDAI, third party
clarifications before a purchase decision is taken, as the premium has seen a good surge of 14.3 per cent in FYTD
maturity value of any term insurance policy is always a Big February 2020 as people are going for cheap alternatives
Zero. for compliance.

General Insurance Industry always has The coronavirus pandemic is savaging the global economy,
resulting in widespread business closures, near-universal
mixed portfolio:
event cancellations, working from home & attending/
The Fire Policies, Liability Insurance Policies and Health responding the mails of bosses, insured, intermediaries, like
Insurance Policies are thriving in this current market being brokers, Surveyors, etc., working the cancellation of orders
sold on-line / on digital platform, whereas the other Line of and slowing of deliveries, and a general disruption of supply
Businesses (LOBs) is definitely shrinking. COVID-19 is having chains. News reports indicate that the impacts are already
drastic economic impacts on various industries, including being felt in virtually all industries. Travel, transportation,

The Insurance Times, July 2020 31