Page 21 - Insurance Times Janaury 2021

Cover Story

IMPACT OF COVID-

19 ON GENERAL

INSURANCE SECTOR

IN INDIA AND THE

WAY FORWARD

1. Introduction: Globally the countries have focused on two strategies, one
on mitigating but not necessarily terminating the spread of
On December 8, 2019 the first pneumonia case of unknown
cause was found in Wuhan, China. It was later identified to virus while the other depends on more stringent measures
to contain and reverse the growth trajectory of virus (Qiu
be caused by a new coronavirus and the disease was named
as Coronavirus Disease 2019 (COVID-19) by the World Health et al., 2020). While most western countries started with an
Organisation (WHO). COVID-19 has posed a significant implementation of the former strategy, later most of the
challenge to both the lives and livelihood of the people countries have shifted towards more stringent suppressing
around the world. Economic activities of India are also strategy which, interalia, involves city lockdown, mandatory
affected by this unprecedented crisis with phasewise quarantine and other social distancing measures to restrict
lockdowns, implementation of social distancing measures the spread of COVID-19. Countries such as China, Singapore
and supply chain disruptions. Further, disruptions in global and South Korea have adopted the latter strategy from the
economy have imposed additional woes to the Indian beginning.
economy.
India had also imposed strict measures in the form of
About the author lockdown from 25th March 2020 till 31st May 2020 (MoHA,
GoI) and imposed social distancing guidelines to restrict the
Abhijit Mukherjee spread of virus. These measures had assisted in controlling
Research Scholar the infection rates, however, it took a toll on the economy
Department of Management Studies paving the way to restart the economic activities by way of
National Institute of Technology phase wise unlockdown w.e.f 1st June 2020 (MoHA, GoI).
Durgapur
This led to gradual ramp up of economic activities which is
Dr. Amlan Ghosh also reflected in future expectation index of Consumer
Associate Professor Confidence Survey for July 2020 (RBI).
Department of Management Studies
National Institute of Technology One of the industries majorly affected by this unprecedented
Durgapur situation is the General Insurance (GI) sector or non-life

The Insurance Times, January 2021 21