Hello Readers!!

COVID-19 vaccine drive started in India on 16^th January 2021. Till today around 1.1 Crore people have been vaccinated against COVID-19 in India. 

Well, there is good news from insurance companies for those who have jot the COVID-19 jab or those who have developed anti-bodies post-recovery. They are likely to bring added goodies for those who had vaccinated themselves against COVID-19.

However, this is so opposite of how insurance companies took steps last year when the COVID-19 spread was on peak. They set many hurdles to claim the policy for those who got infected with COVID-19 or had a history of COVID-19. Even for health workers and those who were quarantined, the process to claim the policy hitched all.

However, this year insurance companies are looking towards giving favorable treatment to those who have got their COVID-19 jab. Let us have a look at what the insurance companies are looking forward to.

Waiting Period Might Get Waived Off!!

Currently, health insurance policies giving cover for COVID-19 are associated with a kind of holding period for policyholders who contract COVID-19. The waiting periods before issuing the policy, range from three months for those who have recovered from COVID-19 and did not need hospitalization, while it is 6 months for those who had to be hospitalized due to COVID-19.

Experts say that the waiting period was introduced by the insurance companies to keep their loss ratios under control as there was a large-scale claim of policies seen last year due to CVID-19. However recently MD and CEO, of IndiaFirst Life Insurance RM Vishakha said that the waiting period could be waived off for those insurance buyers who have got their vaccination against COVID-19. 

Lower Premiums For Health Insurance Policies!!

Experts believe that in the coming days the COVID-19 is effectively going to influence the underwriting for health insurance. Underwriting is the process that the insurer goes through before deciding whether the policy can be issued or not to the person concerned.

RM Vishakha said that those people who have co-morbidities but have got vaccinated against COVID-19 or have developed anti-bodies post-recovery, for the premium amount can be lowered for their policies. In other words, the incremental charge, which insurance companies levy over the base premium to cover the risks of pre-existing diseases, could be lower. However, those people with co-morbidities and who are not vaccinated against COVID-19 still comes at high risk for insurance companies as chances of hospitalization and treatment costs are likely to be higher.

Rewards And Discount In The Near Future For The Vaccinated!!

Keeping in the inflation in the healthcare sector which is likely to remain the same in the financial year 2021-22, that is in the 19-20 percent zone, the insurers might come up with some rewards or discount features for those who go their COVID-19 jab.

Aatur Thakkar, Director, Alliance Insurance Brokers says, before issuing policy the insurers must question the person concerned will, ‘Are you vaccinated or not?’. Depending on this, even the price points will be affected. Currently, several insurers already offer concessions or reward points to policyholders who demonstrate improvement in their health parameters or carry out defined fitness activities.

However, this is not the case with all the insurers. There are some insurers, who would not be issuing you the policy based on whether you have got COVID-19 jab or not. These insurers may take calls on issuing policies to covid-recovered patients after analyzing the symptoms and, in general, there could be a 15-day waiting period post-policy issuance.

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For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).