The Impact Of The Coronavirus Pandemic On Health Insurance In India
The Coronavirus pandemic has fundamentally altered our lives, challenging our previous notions of normalcy. Its effects have rippled across various sectors, including retail, travel, banking, insurance, and manufacturing, permanently transforming how these industries operate. Here are some significant changes observed in the Indian health insurance sector as a result of the pandemic:
Introduction of Dedicated Coronavirus Health Insurance Plans
Before the pandemic, standard health insurance plans covered a range of medical needs, including illnesses, hospitalizations, surgeries, accidents, and critical illnesses. There were also specific plans like critical illness insurance, top-up policies, and super top-up policies. However, the pandemic necessitated a shift in the health insurance sector’s approach. By June 2020, insurance providers introduced two Coronavirus-specific health plans: Corona Rakshak and Corona Kavach. These plans were dedicated solely to the treatment and hospitalization of policyholders affected by the virus. Corona Rakshak is an individual plan, while Corona Kavach offers both individual and family coverage. This marked the first time in India’s health insurance history that a virus-specific category of health plans was introduced. Leading insurance providers enhanced these plans by establishing cashless tie-ups with hospitals, increasing coverage amounts for greater family protection, and revising renewal dates, extending them up to September 30, 2021.
Transition to a Digital-Only Interface for Policy Purchase
Traditionally, purchasing health and life insurance plans required policyholders to undergo a medical check-up. Any illnesses or disorders detected during the check-up could result in higher premiums or policy disapproval. However, the pandemic’s demand for social distancing led to a shift toward a digital-only interface for purchasing health insurance plans, particularly Coronavirus-specific plans. All aspects of the transaction, including payments, calculations, and communication, are now conducted digitally to avoid human contact. Insurance providers have moved all policies and related products online, implementing robust security and automation protocols to protect customer information and privacy. The fully digitized process allows customers to use a smartphone or laptop to manage their policy, make payments, renew plans, enhance coverage, and more.
Accelerated Claims and Processing Times
The rapid spread and severity of the Coronavirus have underscored the unpredictability and brevity of life. The virus has claimed millions of lives, prompting the health insurance industry to expedite claims processing and assist customers with the necessary paperwork. Approvals for new policy purchases are also being issued much faster than before. Insurance providers recognize that timely health coverage is crucial, a shift from the previous slower pace.
Why Health Insurance is More Crucial Than Ever
The pandemic has starkly highlighted the importance of health insurance. Beyond the immediate fear of COVID-19, over a year of uncertainty and home confinement has affected many people’s physical and mental health. The shift to work-from-home and home education has led to weight gain, increased consumption of fast food, and sedentary lifestyles. These changes portend a rise in lifestyle diseases, affecting even younger age groups. In conclusion, the pandemic has brought significant changes to the health insurance sector in India, emphasizing the need for comprehensive coverage and digital solutions. As we navigate this new normal, having robust health insurance is more important than ever to safeguard against unforeseen medical expenses and ensure overall well-being.