Covid survivors, if unfit after 3 months, may not get life insurance cover

CHENNAI: Covid survivors may face rejection or hurdles for their life insurance proposals if proved unfit after an insurer-imposed, three-month waiting period. These restrictions are stringent for Covid survivors above the age of 60.

In low-risk cases, an additional 20-30% premium will be charged to those reporting permanent organ damage. “Applicants with medical history will be treated differently, like those with co-morbidity. Such people are already treated as sub-standard life categories. In some cases, unfit Covid survivors are treated on a par with those with co-morbidities and charge extra mortality,” said Avdhesh Gupta, appointed actuary of Bajaj Allianz Life. Survivors will also be subject to a Covid questionnaire. Those who travel abroad will see their proposals being accepted a month after landing.

Lakhs of people, who survived Covid-19, are expected to deal with long-term medical issues like heart, kidney and lung damage, especially those who were hospitalised for four weeks or above, after contracting the coronavirus. Aditya Birla Sun Life Insurance’s chief actuarial officer Anil Kumar Singh said: “Such restrictions are placed under the guidance of reinsurers. We do not have the data to assess the risk factor, and hence charge the additional premium.”

“Cost of life cover will be decided after the three-month waiting period and depends on the effect the virus has had on the individual’s health. Additional premium charges are decided based on how many organs are impacted,” said Singh. “In case of no complications or long-term effect reported by a Covid survivor, no extra charge will be placed.”