Page 35 - The Insurance Times July 2020

on the aggregate premium for family floater plans and 5. In case of any fault in TPAs/ Network Service in above
if the plan is bought online without the involvement of to be seriously taken by insurer - even blacklisting them.
an intermediary. One of the PSU insurers has offered
up to 90% discount to add family members. For older The impact on insurance customers so far:
age groups, the difference in premium is sharp. For As insurers try to grapple with an increased volume of claims
those above 60 years, for a sum insured of Rs. 3 lakh and customer queries, they are also facing increasing calls
for one year, Oriental is charging Rs. 1,864 plus taxes, in the press and on social media to help individuals and
Future Generali Rs. 2,552 plus taxes, and Go Digit Rs. businesses who suddenly find themselves in dire straits. That
26,195 plus taxes. If you go for the optional cover, the is exacerbating the situation, resulting in long wait times
premium will have to be paid over and above the for responses and even further customer disgruntlement.
premium for the base policy. For the same tenure, age Unsurprisingly, that has had a knock on effect on financial
and cover, Future Generali is charging Rs. 100.68 plus service providers across the board and those in the insurance
taxes for the optional cover, whereas Go Digit is industry are no exception. In some cases insurers have
charging Rs. 1,680 plus taxes. started taking action to protect their businesses which,
10. In general premium rates of some PSU insurers are while sensible, left many consumers in the lurch as airlines
significantly competitive as compared to those of select failed to cancel flights and governments issued conflicting
private insurers. With benefits being identical, premiums advice as to whether people should travel or not. Others in
are an important factor to choose an insurer. Most the insurance industry meanwhile are being forced into
insurers have a wide network of cashless hospitals - but action to customers' benefit by governments' emergency
for that PSU Insurer may be better choice. While the responses to the virus.
policy could work well for the uninsured, if you already
have adequate health cover, you could give this product At the same time insurers' reputations, never
a miss. If you have a Rs. 10 lakh-plus coverage, then overwhelmingly positive among customers, are being
you don't have to supplement your policy with this battered yet further as businesses and consumers find that
Corona Kavach Product. many basic policies do not cover the impacts of a global
pandemic and publicly express their dismay. This situation
11. In general premium rates of some PSU insurers are
significantly competitive as compared to those of select does largely due to customers not fully understand insurance
private insurers. With benefits being identical, premiums coverage, but that's partly the fault of the insurers for using
are an important factor to choose an insurer. Most legalese and long, complicated terms and conditions.
insurers have a wide network of cashless hospitals - but
for that PSU Insurer may be better choice. While the The long and the short of it is that we've ended up in an
policy could work well for the uninsured, if you already environment where people buy insurance based on which
have adequate health cover, you could give this product policy is cheapest and, unsurprisingly, cheap policies rarely
a miss. If you have a ?10 lakh-plus coverage, then you cover unexpected or unusual events - like global pandemics.
don't have to supplement your policy with this Corona They are facing increasing calls to help individuals and
Kavach Product. businesses who suddenly find themselves in dire straits
definitely it are the Limited exposure for General Insurers.
The circular no. IRDAI/HLT/MISC/CIR/189/07/
Speaking on non-life or general insurance, the author
2020 NECESSITATES: expects the impact on claims to be relatively manageable.
1. To ensure strict compliance of provision of cashless Most insurers learned the lessons from the SARS outbreak
facility to the Policyholders for treatment of Covid-19 of 2003 and introduced exclusion clauses for communicable
patients. diseases and epidemics/pandemics into most non-life
2. No denial of cashless facility for treatment of Covid-19 products such as business interruption and travel insurance.
by network hospitals. Business interruption policies usually pay out only if physical
damage occurs to an organization's assets or operations -
3. Service Level Agreement in terms of Regulation -31 (a) so coronavirus related claims may not be covered, but there
of IRDAI (Health Insurance Regulation, 2016) in is potential for future disputes on this issue.
between TPAs & Network Hospitals in this direction.
4. Immediate & good Redressal for grievance relating to Travel insurance, meanwhile, may offer cover if a customer
complaints arising out such cashless facility provided to is diagnosed with the virus before or during their trip - but
Covis-19 patients. not for travel that is cancelled because of the pandemic,

The Insurance Times, July 2020 35