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Impact of COVID-19: This is why insurance may never be the same again

The recent outbreak of diseases like COVID-19 has raised awareness among people about insurance, and most of them now see it as a necessity to prepare (at least for the future) for such unexpected situations. Before the coronavirus epidemic in India, only 10 percent of people were interested in buying insurance to cover medical emergencies, including infectious and epidemic diseases, but now 71 percent of people consider health insurance a necessity to combat unexpected epidemics like COVID-19.

Insurance companies are now also beginning to create products for a world in which this virus outbreak could become the new normal after many companies were left in the cold during the COVID-19 crisis. While these new pandemic-resistant policies may not be cheap, they provide companies the opportunity to insure against outages and losses in the event of another pandemic. Both existing service providers and new niche players are targeting this opportunity either by adding this coverage to existing products or by creating something new to address these risks.

Corona health insurance products

In order to address the current COVID crisis and ensure that the maximum number of people are covered by some form of health insurance coverage against COVID-19, per IRDAI directives, public and health insurers have begun offering two standard products: Corona Kavach, a compensation-based health plan, and Corona Rakshak. Fixed Benefit Health Insurance Policy - To cover the costs of treating COVID-19.

These individual health policies aim to meet the basic health insurance needs of the general public for COVID-19 by offering a common set of policy formulation. Clients can purchase these policies through the insurance company websites or online web aggregators or by contacting the insurance company branches or agents directly. These policies can be purchased for Rs 100 to Rs 200 per month.

Pay according to your driving

As most companies have adopted a work-from-home policy due to the ongoing COVID-19 pandemic, there has been a nationwide drop in the number of miles we drive. From mid-March through the first week of August, total mileage decreased by more than 50 percent across the country.

In anticipation of this, usage-based auto insurance policies were introduced a few weeks ago and are being adopted more and more. This new type of car insurance policy, launched by various insurance companies, allows car owners to insure their cars for the miles they tend to drive rather than the average everyone is supposed to drive, in an entire year.

Therefore, this is very beneficial for those who see low use of their car this year and want to take advantage of discounts due to less use. Insurance companies also see this as a win-win outcome because cars that are used less also tend to show less chance of claim.

On a larger scale, the introduction of the pay-as-you-go system is likely to be a major change in the history of car insurance in India, as it seeks to be more responsive to the needs of use (and therefore) of customers customers. This shift has been cemented by the uncertain times we find ourselves in when government, organizations and employees discourage unnecessary travel and discover the benefits of working from home.

The "pay-while-driving model" will undoubtedly boost insurance penetration in the public sector by bringing more and more vehicles under the insurance umbrella.

Insurance through telemedicine

The COVID-19 crisis underscored the role technology can play in obtaining health and life insurance policies. Telemedicine has now emerged as a faster, safer and more secure way to explain the issuance of insurance policies to consumers in today's environment. There is no doubt that remote medical evaluation is therefore increasingly the norm and will become easier and more widely accepted in the coming years.


While taking the health insurance policy through a remote medical evaluation, the person will have to send an announcement of their health condition through a call with the doctor designated by the insurance company, who will ask simple questions related to the conditions health of the person, as well as lifestyle habits. With this method, 1 million rupees health insurance coverage can be purchased.

On the other hand, under life insurance, under the telemedicine configuration, coverage of up to 2 crore rupees can now be purchased. Clients are advised to provide adequate and correct information to physicians over the phone so that their families do not face any challenge during the claims resolution process. The telemedicine process is fully regulated by IRDAI and is reliable from the customer's point of view.

Digital transformation in the insurance sector

In recent months, digital technologies have transformed the insurance industry globally. While the recent involvement of insurers in digital platforms through applications and social media has allowed them to reach out and engage customers directly, there has been a huge revolution in the background by adopting e-KYC and the cloud infrastructure that has allowed insurers to serve a customer who has never been before. It has an instance.

Today, insurance companies attach the utmost importance to digitizing their core business processes. Therefore, there is great interest in advanced analytics, data and digital technologies that promise to help insurers better serve and understand customers. Even when these changes were discussed a few months ago, the pandemic confirmed that they are already on their way to becoming a reality, meaning the digital customer only has better options than they expect in the coming months.