Average sum insured doubled to Rs. 2.2 million in pandemic year

According to a survey conducted recently, the average sum insured for health insurance policies bought on the online insurance marketplace almost doubled to Rs. 2.24 million during the financial year 2020-21 against Rs. 1.14 million in FY19-20.

The survey, which looked at how the COVID-19 pandemic has impacted consumer sentiment and purchase triggers when it comes to health insurance plans, found a sharp increase in awareness and demand for high cover protection policies.

On the claims filed during the year, the survey found that in April, 2020, of the total claims reported, only 4% were related to COVID-19. However, as the pandemic peaked in September, 2020, the proportion of COVID-related claims increased to around 40% of the total claims. The number of claims steadily increased from 8% in May to 23% in July and to 34% in August.

According to the statement, “The overall trend depicts how health insurance in FY20-21 was amongst the most sought-after investment instruments, leapfrogging all other insurance categories.”

 Amit Chhabra, Head – Health Insurance, Policybazaar, stated, “The pandemic has acted as a catalyst for increased awareness of health insurance. People have realized its importance for unforeseen health-related situations and are now investing more in high sum insured plans for advanced treatments.”

Demand for plans with higher sum insured (more than Rs. 25 lakh) also witnessed a jump of 40% over the last financial year. The survey also showed that there was a 150% jump in requests from policyholders to port their existing health insurance plans to the higher sum insured (more than Rs. 25 lakh) from lower covers ( Rs. 5-10 lakh).

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