Be bready to pay a higher premium for your insurance cover amid fear of Covid 19 pandemic

<p>
Be ready to pay a much higher premium for your health and life insurance cover as the Covid 19 pandemic continues to hit headlines.</p>
<p>
Sample this. “I had to renew my Royal Sundaram health insurance policy last month. I realised my premium has increased by 40 per cent,” a resident of Noida said.</p>
<p>
He is not alone. Private insurance companies have quietly increased the premium for renewals of policies for both life and health. A senior official at a private insurance company said that the rise in premium is due to the whopping increase in claims due to the ongoing Covid 19 pandemic.</p>
<p>
“There is no other way. Mortality has gone up. Besides, claims for health insurance have also surged like never before in the last one year—since the pandemic hit. There is apprehension of a third wave. Insurers are being forced to alter their pricing based on claims ratio as companies need to stay afloat,” the official said.</p>
<p>
All insurance majors, however, have to mandatorily seek approval from Insurance Regulatory and Development Authority of India (Irdai).   </p>
<p>
However, a senior executive engaged with a private insurance company said that despite the rise in pricing, demand for insurance has risen exponentially.</p>
<p>
“Even with the rise in premium, there has been a sharp increase in demand. People’s awareness for the need to have insurance cover has also gone up,” the official said.</p>
<p>
According to Asia Insurance Review, as of March 31, health insurance companies received 9,80,000 claims amounting to about $2 billion primarily on account of the virus. It added that the claims rose to 1.48 million as of 14 May. This means that in the first 44 days of the new fiscal year that started on 1 April, Covid-19 claims which is 57 per cent of the pandemic-related claims for FY21.</p>
<p>
“Last year, though we had claims, we were not worried about the impact on the balance sheet. This year, it could reach a point where it does,” Asia Insurance Review quoted Atul Sahai, chairman and managing director of India's biggest general insurer ‎ New India Assurance as saying.</p>
<p>
Not just that. What is causing more problems for citizens is the reluctance of private insurance companies to offer cover to those who have been hit by the virus.</p>
<p>
 </p>
<p>
 </p>