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DISSERTATION – PROJECT REPORT

ON

[Impact of Covid-19 on Health Insurance sector in India]

A report submitted in partial fulfillment of the requirements for the Award of a Degree of
PG DIPLOMA
in
BANKING AND INSURANCE
Submitted By
[Chandrika R. Sahu]
PRN No.: 8022049412
Seat No.: 232235
[Cheenu Y. Suthar]
PRN No.: 8022048595
Seat No.: 232245
[Shivam H.Rathod]
PRN No.: 8022047046
Seat No.: 232233

Under the Guidance of:-[Mr. Bhagirath. Baria Sir.]

Under the Co-Guidance of:-[Mr. Manojkumar Parmar sir]

DEPARTMENT OF BANKING AND INSURANCE

FACULTY OF COMMERCE

THE MAHARAJA SAYAJIRAO UNIVERSITY OF BARODA

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ACKNOWLEDGMENT

We first and foremost express our gratitude to our Guide [BHAGIRATH. BARIA] and Co-guide [MR.

MANOJKUMAR PARMAR]. An inspiration and unique conceptualization of our guide really supported and

encouraged us throughout this research work. This project work could have never been finished without the

help of our guide. We would like to thank Prof. (Dr.) Ketan Upadhyay, Head - Department of Banking and

Insurance, for the support and facilities provided to complete this project report. We also thank all faculty

members for their keen interest and co- operation extended to us. We owe sincere thanks to our family

members and friends for their continuous support.

FROM:

[Chandrika R. sahu]
PRN:8022049412
Seat No: 232235
[Cheenu Y. Suthar]
PRN :8022048595
Seat No :232245
[Shivam H. Rathod]
PRN No :8022047046
Seat No :232233
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CERTIFICATE

This is certified that dissertation on the topic of “Impact of Covid-19 on Health Insurance sector in India”

submitted as part of fulfilment and requirement of PG Diploma In Banking and Insurance is the work of

Shivam, Chandrika, Cheenu who have carried out the study under my supervision and guidance.

Name of the Guide: MR. BHAGIRATH. BARIA

Signature of the Guide:

Date:

Name of the CO-Guide: MR. MANOJKUMAR PARMAR

Signature of the Guide:

Date:
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STUDENT - PROJECT GUIDE INTERACTION REPORT

Date: 26/04/2023

Studying in (Please put a ):

(1) PG DIPLOMA IN BANKING- Semester - 2: Paper - X
a) Specialization in Marketing Management
b) Specialization in Human Resource Management
c) Specialization in Accounting & Finance Management
d) Specialization in Business Economics
e) Specialization In Banking

Name of the student: Shivam. H. Rathod, Chandrika. R. Sahu, Cheenu. Y. Suthar

Title of the project: - A STUDY ON IMPACT OF COVID-19 ON

HEALTH INSURANCE SECTOR IN INDIA

Name of the Guide: - Bhagirath. P. Baria

Name of the Co-Guide: - Mr. Manojkumar Parmar

Record of Student - Guide Interaction

Date Topic of study/Guidance Signature
Literature Review
Introduction related what to add
How to analyse the data
Citation for literature review, bibliography table of
content and final changes in report and editing
Changes in report
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ABSTRACT

India, which has the second-largest population in the world is suffering severely
from Covid-19 disease. Social distancing and lockdown rules were employed in
India, which however had an additional impact on the economy, human living,
and environment. Where a negative impact was observed for the health
department. The corona pandemic has pushed business across sectors to change
the way they operate and the health insurance industry is no exception. From sold
new policies to the customer to settling claims, the extended lockdown in the
wake of Covid-19 has pushed insurance companies to depend heavily on their
digital architecture. A lot of insurance providers are making customized plans to
ensure coverage affected. This paper is attempting the study about Covid-19 and
how it impact to the health insurance sector.
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TABLE OF CONTENTS
1. INTRODUCTION…………………………………………………………………...8
1.1 Type of Insurance……………………………………………………………9
1.2 Covid specific Health Insurance……………………………………………11
2. Literature Review………………………………………………………………….12
3. Objectives…………………………………………………………………………..15
4. Methodology……………………………………………………………………….16
4.1 Research design……………………………………………………………..16
4.2 Data Collection………………………………………………………………16
5. Data Analysis………………………………………………………………………17
What impact do you expect on your company’s revenue and/or
profits this year as a result of COVID-19?..................................................22
6. Changing trends and challenges in life Insurance
During Covid-19…………………………………………………………………...23
7. Key Changes In IRDA Regulation Vis-A-Vis Covid-19……………………...24
8. Product development……………………………………………………………27
9. Observation………………………………………………………………………..28
10. Conclusion………………………………………………………………………..29
11. Reference…………………………………………………………………………30
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Introduction
_________________________________
An insurance is legal agreement between an insurer (insurance company) and insured
(individual), In which an insured receives financial protection from an insured receives
financial protection from an insurer for the losses he may suffer under specific
circumstances.

Under an insurance policy, the inured needs to pay regular amount of premiums to the
insurer. The insurer pays a predetermined sum assured to the insured if an unfortunate event
occurs, such as death of the life insured, or damage to the insured or his property.

India is currently one of the top three countries hardest afflicted by Covid-19. The country is
experiencing significant inflation, particularly medical inflation, and unemployment as a
result of the health crisis.

One of COVID-19's most significant issues is its high treatment cost, which can have a
negative impact on people's economic and mental health, particularly the poor and middle
classes. The increase underscores the fact that, in a country where insurance penetration was
below 4% in pre-covid days, more individuals are beginning to regard health insurance as
important as other essentials for survival. One of COVID-19's most significant issues is its
high treatment cost, which can have a negative impact on people's economic and mental
health, particularly the poor and middle classes. The increase underscores the fact that, in a
country where insurance penetration was below 4% in pre-covid days, more individuals are
beginning to regard health insurance as important as other essentials for survival.

We've seen a sharp increase in the selling of comprehensive health insurance plans during
the last year. Prior to the Covid era, approximately 32% of individuals obtained
comprehensive insurance plans, but after being hit by one of the worst pandemics in history,
this percentage has risen to 55 percent.
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TYPES OF INSURANCE

General Insurance
Life Insurance

Term INSURANCE Fire Insurance Marine Miscellaneous

Plan Insurance Insurance

Whole Life Plan

Health
Endowment Plan Insurance

ULIP Plan
HOME
Insurance
Money-Back Plan

Annuity Pension Plan Motor

Insurance

Retirement
Travel
insurance
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• Health insurance policies are often considered as a mandatory risk cover.Still,a lot
of people in our country do not have a proper health insurance policy in place.
Again, out of people who have it, many are inadequately insured. Medical costs it
has rising with every passing day, and it has become important to have a sufficient
cover for yourself and your family members .
Individual Family
Health Floater
Insurance
Insurance
ESIS & other Critical
GOVT schemes Illness’
as Aayushman Cover
Bharat

Senior Citizen
HEALTH
Preventive Health
INSURANCE
Healthcare Insurance
Plan

Personal Group
Accident Health
Insurance Insurance
Maternity
Health
Insurance

• The Indian government has introduced specific health insurance policies which can help
you get through the corona-led tough time. You should go through the details and take
advice from your insurance expert before buying the policy. Additionally, there are also
some regular health policies that include hospitalization for patients affected by
COVID19.
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❖Covid specific health policies.

• The Insurance Regulatory and Development Authority of India (IRDA) instructed all
general and health insurance companies to offer short-term Covid specific health policies,
Corona Kavach and Corona Rakshak. Corona Kavach is a standard indemnity-based
health policy being offered by general and health insurers while Corona Rakshak is being
offered as Covid standard benefit-based health policy.

• Now, due to COVID-19 pandemic, it has become all the more important to have
sufficient health insurance in place. Hospitals have witnessed bills crossing lakhs due to
Coronavirus. The virus has endangered finances of many unprepared individuals.

• If you take corona Kavach Policy, you will get multiple sum inured options, with multiple
sum insured options, starting from 50,000 to 5 lacs and covers the cost of medical
expenses for hospitalization, home care treatment, pre-hospitalization, road ambulance
along with AYUSH treatment up to sum insured. All these features have their own policy
terms and conditions which you can easily check on the insurer’s website.

• Dependency on comprehensive health insurance policies for protection against larger

spectrum of diseases including Covid

• On retrospection, now most of the prevailing health policies include hospitalization

expenses occurred due to Covid 19. these are dependent on terms and conditions, and
parameters like exclusions, waiting periods, and pre-existing conditions. If a person is
admitted for more than a day, you can claim the insurance. Keep in mind that you might
not be able to claim it without hospitalization.

• infections, diseases and accidents. If Purchasing a personal comprehensive insurance

plan can be a wise thing to do, to keep you covered for high sum insured, as the plan
provides financial protection against not just Covid but also for all you have an
inadequate health cover you should definitely opt for Covid coverage because treatment
for Covid can be expensive and can exhaust the entire sum insured of yours for the year.
In order to make a decision, it is crucial for you to understand the benefits of Covid 19
policy over basic or comprehensive health insurance policy.
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Literature Review

(Moreno, Wykes, & Astango, 2021)

❖ Preliminary findings suggest adverse mental health effect in previously healthy people
and especially in people with preexisting mental health disorders an international group
of Clinicians, mental health experts and users of mental health service has come together
to reflect on challenges for mental health the CoviD-19 Poses. Thus, the Covid-19
pandemic Could be an opportunity to improve mental health services.

(Kaur & Chandhok, 2022)

❖ They have conducted research on Covid-19 impact on India Insurance Industries.

while underwriting a health policy on has to keep in mind very aspect of Insured
including lifestyle, health condition and habits. they cover Enterpris overall performance
earlier than Covid-19 pandemic in India .

(DR.V.Parvathi & DR.C, 2021)

❖ Society and the economy worldwide.

the Covid-19 Pandemic has raised many challenges for the India Insurance They are
basically talk about Insurance industries. What is their role in our life. they the Covid-19
pandemic has a significant impact on business, individual Sector. Insurers should sell
more Product with better flexibility and Convenience .
They can innovative and more capital-efficient Insurance lifestyle.

(Nawkhare & Ahire kale, 2020)

❖ This study focused upon the awareness of health insurance among secular in India.
12 | P a g e

the study is to examine the growth in health insurance Industries. And analyze the
position of the individual company are to be calculated and also analyze the company's
claims, settlements and premium.

(Bhanduri , 2020)

❖ The study is exposed the fault lines of Indra’s public health care system. The pandemic
can be useful window of opportunity to undertake public health care reform that are long
due such reforms are, however, Constrained by the path dependent characteristics of
private health care in India.

(Divya & Mu Yang Shin, 2020)

❖ The study of Covid-19 could have meaningful impact on insurers due to extensive
financial dislocations across asset classes and in an extreme scenario potentially large
increases in morbidity and mortality

(saher, Sysban, & Nobanee, 2022)

❖ The study is indicating Covid-19 pandemic on an important Industry like the insurance
Sector and how firm have. Taken the pandemic to be an opportunity to reach a wider
range of people and help the safeguard. Themselves against loss exposures due to this
pandemic.

(Goel, 2014)

❖ Suggested that health insurance companies should come with clear policy statement
researcher has studied the Consumer behavior of resident of Rohtak towards health
Insurance

(Kulkarni, Jain, & Kamble, 2022)

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❖ The study is focused on the health insurance industry in India. Analysis consumer outlook
and buying behavior towards health insurance in India. To find out the impact of external
factors on consumer buying behavior.

(Kala & Jain , 2015)

❖ The study a focused upon the awareness of health insurance among secular in Rajasthan
Area this study also provides idea for health insurance. Companies to deal with their
limitations and to grab the opportunities more in the market

(Umar, Bial, & Muhammad )

❖ The study is examined the firm specific abnormal return returns of Transportation and
travel services sector from India, UK, France,China, in response to Covid-19. Using event
study methodology results revelated that investor in developed countries provide
significant long term abnormal returns.

(kumar & Kaur, 2015)

❖ To analytical study of the health insure industry in India. To find out the impact of
external factors on consumer buying behaviors .

(chatterjee, Giri, & Bhandyopadhyay, 2018)

❖ The study indicates India’s overall health insurance sector India’s health point out the
challenges facing the insurance industry does and compares. With other countries in
terms of healthcare.

(M.vinoth, 2019)
❖ The study is focused on. The health insurance plans, with the calculation of the status of
each an organization aimed at along with the analysis of claims settlement and premiums.
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Objectives

• To understand customer point of view toward health insurance.

• To understand, the basic health insurance market.

• To study the impact and effect of corona virus on the business of health insurance
sector in India.
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Research Methodology

This Project is Based on secondary source of data.

The used data will be collected from different books, journals, articles, research paper,
scheduled commercial banks website, website of IRDA annual report.
The research is descriptive in nature.
The study is focused on how impact of covid-19 on health insurance sector understands
customer point of view towards health insurance. Analysis customer buying behavior
towardhealth insurance in India .
❖ Research design: -

The research will be distractive as it aims to give aggregate view point impact of
health insurance sector

❖ Data collection: -
The research will be reliant secondary data such as published research paper, articles,
online websites.
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Data Analysis

From the research study we were able to find below data from health insurance company for
pre-post COVID-19.

➢ Study of health insurance claim pre COVID-19.

Table :-

Incurred Claim Ratio of Health Insurance

2016-17 Incurred Claim Ratio
Public Insurer Public Insurer Private Inurer
National 126.98 -

New India 102.94 -

Oriental 118.23 -

United 138.51 -

TOTAL 120.15 -

Private Insurer
Bajaj Allianz CO Ltd. 78.5
HDFC ERGO CO Ltd. 50.76
ICICI LOMBARD CO Ltd. 90.22
Kotak Mahindra CO Ltd. 51.55
Reliance General CO Ltd. 98.49
TOTAL 73.9
Source:- https://irdai.gov.in/

-The Table - 1 represent data for pre COVID-19. The Public Sector Insurer . We have taken
four different companies .

For Instance say NATIONAL COMPANY has a incurred claim ratio for the year of 2016 –
2017 is 126.98% and the company NEW INDIA COMPANY incurred claim ratio for the
year of 2016-17 is 102.94 %. The ORINTAL COMPANY incurred claim ratio is
118.23%.The UNITED COMPANY claim incurred ratio is 138.5%. The united company
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may have higher ratio of 138.5%. but the time taken for the settlement of claim s can be
relatively high On other hand all other companies have a lower ratio in comparison with
united company .

Now also this Table- 1 represent data for pre covid -19 private sector insurer. We have taken
five companies
For instance, say that the BAJAJ CO.LTD has a incurred claim ratio for the year of
2016 -17 is 78.5%. and the HDFC ERGO CO. LTD. Claim incurred ratio is 50.76%.
The ICICI LOMBARD CO. LTD. Claim incurred ratio is 90.22% and The KOTAK
MAHINDRA CO.LTD. claim incurred ratio is 51.55%. The RELIANCE GENRAL CO.
LTD. Claim incurred ratio is 98.49%. The total average of all private sector companies claim
incurred ratio is 73.9%. The ICICI LOMBARD CO. LTD. May have a higher ratio of
90.22%but the time taken for the settlement of claim can be relatively high on other hand
companies have a lower ratio in comparison with ICICI LOMBARD CO. LTD.
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➢ Study of health insurance claim post Covid-19

Table -2

Incurred Claim Ratio of Health Insurance

2020-21 Incurred Claim Ratio
Public Insurer Public Insurer Private Inurer
National 101.09 -

New India 92.79 -

Oriental 112.51 -

United 106.04 -

TOTAL 101.02 -

Private Insurer
Bajaj Allianz CO Ltd. 77.31
HDFC ERGO CO Ltd. 79.3
ICICI LOMBARD CO Ltd. 78
Kotak Mahindra CO Ltd. 55.17
Reliance General CO Ltd. 93.96
TOTAL 95.93
source :- https://irdai.gov.in/

- The Table -2 represent data for post COVID -19 The PUBLIC SECTOR INSURER
We have taken four different companies .

For instance say NATIONAL COMPANY has a incurred claim ratio for the year 2020- 21 is
101.09% . The NEW INDIA COMPANY incurred claim ratio for the year 2020 – 21is
92.79% . and the company ORIENTAL COMPANY claim incurred ratio is 112. 51% . The
UNITED COMPANY incurred claim ratio is 106.04% .
The ORIENTAL COMPANY may have a higher ratio of 112.51%, but the time taken for the
settlement claim can be relatively high on the other hand, all other companies have a lower
ratio in comparison with ORENTAL COMPANY .
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Now also in this Table represent data for post covid 19 the PRIVATE SECTOR INSURER .
We have taken five companies for instance say the BAJAJ ALLIANZ CO. LTD. Has a
claim incurred is 77.31%. The HDFC ERGO CO. LTD. Has a claim incurred ratio is
79.3%. The ICICI LOMBARD and KOTAK MAHINDRA CO .LTD has claim incurred
ratio is 78% and 55.17%. and The RELIANCE GENRAL CO. LTD . claim incurred ratio
has 93.96%.

The RELIANCE GENRAL CO. LTD. May have a higher ratio of 93.96%, but the time for
settlement of claim can be relatively higher on other hand all other companies have a lower
ratio in comparison with RELIANCE GENRAL CO. LTD .
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➢ The comparative study of pre and post covid -19 incurred claim
ratio .

Table -3
RATIO IN %
Incurred Claim Ratio of Health Insurance
Public Insurer 2020-21 Incurred Claim Ratio 2020-21 Incurred Claim Ratio
National 126.98 101.09
New India 102.94 92.79
Oriental 118.23 112.51
United 138.51 106.04
TOTAL 120.15 101.02

Incurred Claim Ratio of Health Insurance

Private Insurer 2016-17 Incurred Claim Ratio 2020-21 Incurred Claim Ratio
Bajaj Allianz CO Ltd. 78.5 77.31
HDFC ERGO CO Ltd. 50.76 79.3
ICICI LOMBARD CO Ltd. 90.22 78
Kotak Mahindra CO Ltd. 51.55 55.17
Reliance General CO Ltd. 98.49 93.96
TOTAL 73.9 95.93
Source :- https://irdai.gov.in/

In the above data mentioned we can say that overall insurance claim is received more and
more claim in COVID-19

This Table -3 represent the insurance company 2016-17(pre covid-19)& 2020-21.

(post covid-19) data .
The national Ins. Co. Ltd. have received 126.98% claim insured in 2016-17 Followings
details compares public insurance company received claim in 2016-17 & 2020-21 in the
2016-17. The gain of insurance company is less then Covid-19 situation in the year of 2016-
17 but in post covid-19 (2020-21) they received 101.09% Insured claimed Is less than Pre
Covid-19 situation i.e., 2016-17. The New India assurance co. Ltd. also had received
102.94% in comparison post Covid-19 of data i.e., 92.79%

The oriental insurance co. Ltd. also had received 118.23% in comparison post covid of data
i.e., 112.51% united India insurance co. Ltd. around the claim received 138.51% . In
comparison post Covid of data i.e.,106.04%
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Compares of private insurance company received claim in 2016-17& 2020-21 in the 2016-
17.In pre covid-19 data of Bajaj Allianz co. Ltd. and HDFC ERGO co. Ltd. received in
insurance claim in 2016-17 is 78.50% and 50.76% in other hand post covid-19 insurance
claim received in 2020-21 is 77.31% and 79.30%. the gain of insurance company is received
in 2020-21.In pre covid-19 data of ICICI LOMBARD Co. Ltd and KOTAK MAHINDRA
Co. Ltdand Reliance General Co. Ltd received in insurance claim in 2016-17 is 90.22% and
51.55% and 98.49% in other hand post Covid-19 insurance claim received in 2020-21 is
78.00%, 55.17%, 93.96%.

In the above data mentioned we can say that overall insurance claim are received more and
more claim in covid19.
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❖ What impact do you expect on your company’s revenue and/or

profits this year as a result of COVID-19?

5% 5% 3% 4% 2%
4% 6% 5%
5%5% 6% 6%
9% 9% 5%
3%
8% 16% 18%
19% 19% 20% 18%
5%
17% 24%
18% 15%

32% 29% 33%

27%

Overall Consumer markets EUR Financial

services
0% 4% 2% 5%
4%
11% 6% 8% 6% 8%
9%
7% 4% 19%
7%
6% 18%
11% 8%
28%
24% 15% 10%
11% 18%
14%
13%
39%
33% 26%
26%

Government/public TMT IM&A Health

services industries

Decrease 25%-50% Decrease 10%-24.9% Decrease <10% We do not expect any impact to
revenue and/or profits

Increase revenue It is difficult to assess Decrease but Decrease > 50%

and/or profits at this point range unknown

Source: https://www.pwc.in/assets/pdfs/services/crisis-management/covid-19/covid-19-impact-on-the-
indian-insurance-industry.pdf

The survey also shows that cost containment and deferral/ cancellation of investments are the actions
most frequently considered by CFOs as a result of COVID-19, and 81% of CFOs said they would be
implementing cost containment measures. The top six areas where these measures are likely to be
implemented are facilities/general capex,
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operations, workforce, IT, R&D and digital transformation. As per the survey, the least cost
containment is expected in customer experience (11%) and cyber security or privacy (3%).
Improving customer experience and making the ecosystemmore secure for cyber platforms also
emerged as priorities.

❖ Changing trends and challenges in Life Insurance During

Covid-19

1. Growth In on-line coverage Business:

In gift time of pandemic, human beings are extra willing in the direction of on-line
coverage. During duration of lockdown, many human beings purchase coverage
from on-line mode and observed boom of 30 to 40% in coverage business (BW
Business World, November 27, 2020).

2. Boost in call for of natural coverage and medical Insurance:-

with extended lifestyles uncertainty in Covid-19 Pandemic and because the wide
variety of corona nice instance increases. More wide variety of human beings
began out shopping for natural coverage. And medical insurance policies. An
extensive boom of extra than 35% turned into recorded in fitness and time period
coverage plan throughout the duration of lockdown and afterwards also .
3. Increased attention of significance of lifestyles: -

Coverage before Covid-19 pandemic, the general coverage penetration turned into
very low however with extended lifestyles danger in Covid-19 pandemic make
human beings extra conscious withthe significance of lifestyles coverage. Hence
now wider variety of human beings are shopping for coverage each on-line and
offline to limit the danger of uncertainties.
24 | P a g e

4. More purchaser targeted progressive solution: –

with converting business are actually extra targeted in the direction of presenting
purchaser centric innovation solution, which offers huge kind of advantages
alongside covid, danger cover.

5. Increase in call for claims because of demise in Covid: -

There has been unexpected boom with inside the call for of claims because of
upward thrust in wide variety of deaths in Covid-19 pandemic.

❖ Key Changes In IRDA Regulation Vis-A-Vis Covid-19

Regulations play an important role in determining the expansion of any industry

including the insurance sector. The insurance industry of India "is regulated by the
Insurance Regulatory and Development Authority of India" which under goes a
slew of reforms and advancements to make products of insurance far more
consumer oriented.

This allows customers to get the most out of their insurance products and they start
to have far more faith in insurance for their financial well-being. In the year 2020,
this industry underwent a plethora of reforms in order to safeguard the greatest
number of people in India since it was the hardest hit this year owing to the Covid-
199. The changes were made so that the insured people could better manage their
health and remain sufficiently protected.

Following are the key developments made in the health insurance industry in the
year 2020:

A. Introducing Standard Health Insurance Plan:

Arogya Sanjeevani
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In its dangerous effort to make good healthcare accessible to everybody, the "IRDAI"
directed all the insurers to start selling standard health insurance products that is
Arogya Sanjeevani from April 1st, 2020, in its guidelines released on January 2nd,
2020. The rational for introducing this was that the current plans are too complicated
for general people to sense. The commencement of a standard health insurance plan
has aided in simplifying the purchasing process and has made a significant part in
instilling great faith in consumers in this industry.

B. Changes in the Health Insurance Sector as a Result of the Covid-19 pandemic

Since the start of the Covid- 19 pandemic in India in the month of March 2020, IRDAI
has constantly made efforts to address the crises through a multiple of steps to provide
maximum comfort to the consumers.

The inclusion of Covid-19 treatment under health insurance coverage was the first and
most significant change in the insurance sector following the pandemic. Pandemics are
typically not covered by the "health or life insurance policies". This was a good
development, considering treatment for covid-19 costs between Rs 2 Lakhs Rs 4
Lakhs for a 14 day hospital stay. People could receive effective treatment without fear
of financial hardship since the pandemic was covered by health insurance.

In addition, certain modifications were done to the underwriting rules for granting
health insurance plans to consumers. It was instructed to all insurers by the regulator
to provide "health insurance policies" to the consumers through "telemedical"
wherever feasible if a necessary physical medical exam could not be performed
considering the lockdown in the entire nation.
The regulator even permitted the "use of e-KYC" for policy recommencement or the
issuance of new policies to consumers. Customers were permitted to offer consent for
the issuance of a health policy by "video KYC or OTP in lieu of physical signatures".
This allowed people to stay at home and obey social distancing norms while still
receiving insurance for financial well-being.
Following the IRDAI's guidance, insurers launched COVID -19 health insurance plans
called "Corona Kavach and Corona Rakshak". Both of these were established to give
financial protection to persons with low incomes so that they could receive the finest
covid-19 treatment available.

In September 2020, it was permitted by the regulator to cover treatment via

telemedicine under a health insurance policy which meant that a person could took a
26 | P a g e

consultation sitting at his/her home and get the OPD charges covered under the health
insurance policy.

C. Standardization of Health Insurance Plan 10 :-

Refurbished health insurance policies were released on October, 1st 2020, providing
consumers with broader coverage. Customers will benefit from the new plans since
they will cover more diseases and treatments at lower costs. To meet to the demands
and expectations of consumers, the definition of Pre- existing Diseases has been
altered. According to the new guidelines, any diseases/ailments identified by a
"physician 48 months" prior to the granting of health insurance would come under
PED. To guarantee that policyholders with

PED receive appropriate health insurance coverage, IRDAI has directed the insurers to
include permanent exclusions only with the customer's consent. Furthermore, insurers
cannot reject the claim made by a policyholder once the insured has paid the insurance
premium for consecutive 8 years.

This implies that, beginning with the 9th policy year, a customer's health insurance
claim will not be denied unless you commit fraud or make a claim for permanent
exclusion. A claim shall be settled or rejected within 30 days of receipt of the last
relevant document. In the event of a claim payment delay, the insurer will be obligated
to pay the policyholder an interest at a "rate of 2% "over the bank rate from the date of
receipt of the last relevant document to the date of payment of the claim.

D .Introducing an option of EMI for premium payment:-

In the midst of Covid-19 pandemic, the IRDAI has made an alteration that allows
consumers to pay their health insurance premiums in installments. The premium
frequency can be set by the insurer which can be monthly, half-yearly or quarterly.
The change will play a significant role in boosting affordability in the health
insurance sector.
27 | P a g e

❖ Product development: - In the wake of the pandemic there has been greater concern
and awareness about health, and enquiries about health insurance policies have
increased by 30-40%. The pandemic also provide an opportunity for insurance
companies to innovate and serve the enovoing needs of a more informed population.
Several insurance companies launched covid 19 insurance products in 2020. Other
companies may follow suit and introduce such products. These products tend to be
short term and carry fixed benefits, covering a fixed amount in excess of the
Hospitalization Schemes. The IRDA Sandbox has been use full at this time as many
companies approvals for risk cover in special situations.

A few product considerations for health insurance companies are discussed

below :

a) Since details around COVID – 19 treatment and prognosis are still emerging.
insurance companies do not have data related to patient profiles, morbidity
rates, cost of treatment, etc. This data is required to underwrite the risk and
determine the premium for products specifically targeting this disease.
Companies are consequently their products.

b) Based on clinical research and in conjunction with the healthcare and pharma
industries, insurance companies should calculate the possibility of a long trail of
chronic diseases escalation which may require health insurers to reprice their
existing hospitalization products. As of Now , insufficient data may hinder such
research but collaboration between insurers and their actuaries and health care
professionals and institutions can create models which had not been attempted
until now.

c) There is a clear opportunities for insurance companies to partner with their

corporate customer for employee benefits to be fortified with health care
activities in order to increase the health quotient as well as improve the
possibility of weathering the covid- 19 situation better . As a result , the value of
policies will be increased , and claims will tend to go down with an increased
level of awareness of the situations as well as chronic diseases and co-
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morbidities . Many corporate customer of health insurance are investing

separately in such activities . Insurance companies can use this opportunity to
increase client stickiness as well as improve their portfolio and retention ratios.

❖ Finding :-

i. Opportunity for insurance companies and understand the customer point of view
towards health insurance, people had more awareness of health insurance.
ii. Customer and company depend heavily on their on their digital architecture.
iii. Majority of the companies were come up with Covid-19 plan which include in their
existing policies.
iv. In India, it was found that from survey majority of people having health insurance
policy but in rural areas people uneducated about health insurance policies.
v. People are willing to Purchase new health insurance policy for individually and
some people who don’t family but not all, there was some people who don’t know
about insurance policies.
vi. Majority of the people from survey purchase new health insurance policy for their
family.
vii. While Covid-19 has taught us many things, like basic hygiene factors or social
distancing, the one very important thing is that we should not ignore health-
insurance any further. Every family needs it.
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Conclusion

The Covid-19 outbreak has had an influence on daily life, with long-term outcome. The
pandemic has thrown the Indian insurance industry into a loop. It serves as a wake-up call
for both the commercial and public sectors in India’s health-care system. The current
circumstance suggests that investing in technology is worthwhile. It is also referred that this
preventive measure can help contain the pandemic in its later stages. In this research report
some helpful information about Covid-19’s introduction and impact in India is offered.
The aim of the government, regulators, and private health-care enterprises in India during
and after Covid-19 is to address the issues the opportunities in the health – insurance market.
This necessities legislators, regulators, and the insurance industry taking the are understand
now, the sector will be able to respond to crises like Covid-19 more effectively.
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21. ANNUAL REPORT 2016 - 17

https://irdai.gov.in/document-detail?documentId=848335
22. ANNUAL REPORT 2020 -21
https://irdai.gov.in/document-detail?documentId=1078334
23. https://irdai.gov.in/