As Covid rages, Hyderabadis opt for high insurance covers

HYDERABAD: With the Covid-19 pandemic driving home the importance of being adequately insured, Hyderabadis have raced ahead of their counterparts in other South Indian cities when it comes to buying higher insurance covers, reveals data by Policybazaar.com.

As per insurance aggregator platform, which accounts for nearly half of all internet-based insurance purchases in the country, Telangana witnessed a 74% year-on-year (Y-o-Y) growth in terms of new health insurance policies purchased by individuals during April-October 2020.

During this period, the sale of health insurance policies in Hyderabad witnessed a 70% jump, whereas in Bengaluru it rose by 62% and 57% in Chennai.

Even as more people are now opting for health insurance plans, around 35% of the insurance buyers in Hyderabad bought health plans with a cover of Rs 1 crore and above. This figure stood at 30% in Bengaluru and 26% in Chennai, the data revealed. Commenting on the findings, Amit Chhabra, head-health insurance, Policybazaar.com, pointed out the pandemic has not just affected people’s health but has also had a huge impact on their pockets as well, convincing people to opt for health cover.

Bhabtosh Mishra, director underwriting, products & claims at Max Bupa Health Insurance said, “Covid-19 has changed people’s perception regarding health insurance from good-to-have product to must- have product. The rising number of Covid-19 cases and its high treatment costs, along with increased medical inflation in the country have made health insurance a priority purchase today.”

Mishra said that people now see health insurance as an effective risk mitigation tool against unforeseen and ever rising medical treatment costs and with Covid-19, there is heightened fear among people, which will continue to push awareness about health insurance in the longer run. As more people queue up to buy health insurance, Vivek Chaturvedi, CMO and head of direct (online) sales at Digit Insurance, said, due to the pandemic, there has been a significant change in consumer behaviour as more people are now comfortable buying insurance products online.

Source: The Times of India