43% buyers of Corona Kavach health plan in 18-30 age group : Max Bupa survey

The exclusive health insurance plan to meet hospitalisation costs owing to COVID-19 seems to have taken off on a strong footing. Going by the data released by Max Bupa Health Insurance on Corona Kavach plan, the highest purchase of Max Bupa Corona Kavach plan has been done by Millennials as 43% buyers are in the age group of 18-30 years. It reflects that millennials who are usually not keen on buying health insurance have become more serious about health covers as they realize its benefits during pandemics like Covid-19.

Corona Kavach is a simple health insurance plan in which the hospitalization expenses incurred by the policyholder for the treatment of COVID will be paid by the insurer on Positive diagnosis of COVID once the testing has been done in government authorized diagnostic centre.

“In the last quarter, we have seen an increase in health insurance awareness translate into more demand and purchase. Our recent sales trends show that there is a strong preference for comprehensive covers among customers. People are opting for a comprehensive health cover that can guard them against Covid-19 and also insure them against a host of other unforeseen illnesses. Max Bupa registered strong 40% retail growth in Q1, FY 2021-22 which was driven by the purchase of our indemnity plans, that cover hospitalisation for COVID,” says Krishnan Ramachandran, MD & CEO, Max Bupa Health Insurance.

The Max Bupa Covid-19 survey conducted recently also highlights that 57% of people have a strong preference for comprehensive health insurance plans for protection against any unforeseen medical emergencies.

There is also a demand for short term COVID specific covers.  As per the initial trends, the Max Bupa Corona Kavach plan is garnering higher traction amongst first time buyers of health insurance. Around 80% of the people who have purchased the policy have opted for 9.5 months duration, 15% customers have opted for 6.5 months period and 5% have taken the policy for 3.5 months. 85% of buyers have purchased 5 Lakh cover which is the maximum sum insured in this Covid-19 specific plan. This clearly indicates that uncertainty around Covid-19 is leading people to buy health cover for a longer duration.

Corona Kavach plan is the COVID Standard Health Policy and has one Basic mandatory cover and One Optional Cover. The Base Cover of COVID Standard Health Policy shall be offered on Indemnity basis whereas Optional Cover shall be made available on Benefit Basis. In an indemnity cover, the claim is paid as per the hospital bills while in a Benefit cover, the entire sum insured is paid to the policyholder.

The COVID Standard Health Policy has tenure options of 3 ½ months, 6 ½ months, and 9 ½ months including waiting period. The minimum sum insured under COVID Standard Health Policy is Rs 50,000 and the maximum is Rs 5 lakh. Anyone between 18 and 65 years can buy the cover and also cover dependent children between day 1 of age to 25 years. All health insurance and general insurance companies have to offer Corona Kavach with similar policy wordings and features.

Source: Financial Express