COVID-19 has kept everyone on their toes. Last year, this virus has been one of the leading causes of claims. Now, that the vaccines are rolled out it is highly recommended to take the jab as soon as an individual gets the slot. Once the vaccination picks up the pace, it is a safe assumption to make that the COVID-19 claims will reduce.Read more
The Indian insurance industry has been exercising caution while issuing insurance policies in the times of COVID-19 specifically in the life and health sector.
Buying a term insurance policy might be somewhat difficult for those who have not yet been vaccinated against the COVID-19. Some insurance companies in India have mandated to provide COVID-19 vaccination certificates to buy the term insurance plan. However, this would vary from one insurer to the other.
Ensuring the highest degree of financial security for the policyholders, it is also important to ensure that their interests are protected at any point in time.
This article let us understand the possibility of buying a term insurance plan if not vaccinated.
As per the data shared by the Ministry of Health and Family welfare as of June 24, 2021, the count of total vaccination is 30, 16, 26, 028.
In India, two vaccines have been authorized by the Central Drugs Standard Control Organization namely COVISHIELD and COVAXIN. In April 2021, Sputnik-V has also been granted. Moreover, from May 01, 2021, all Indian citizens above the age of 18 years can get the COVID-19 vaccine.
Scrutinising the policyholders on the status of the COVID-19 vaccination can solve two primary purposes for the insurance companies.
To begin with, it would enable the insurers to tighten the risk management. Here, the policyholder who is non vaccinated is deemed riskier to the underwriting. This would save the insurance company from the increased claims burden in case the third wave strikes.
Secondly, this process of enquiry would also help the term insurance companies differentiate the policyholders who are vaccine-hesitant. This would help to enforce high scrutiny for such buyers. The insurer can operate assuming that the buyer who is not vaccinated after a certain time might have no plans to take the jab in the future.
From the perspective of the insurer asking for the COVID-19 vaccination certificate is a good step; however, it will have a slightly negative impact on those who are yet to be inoculated. One of the key reasons would be the shortage of vaccines. In case a final COVID-19 vaccination certificate is required, then the person needs to wait for a certain number of days before taking this second jab.
In a tough time like this, it is better to be safe than sorry. Whether you are planning to buy a term insurance plan or not make sure that you get the vaccination shot. There are insurance companies that have also introduced a cooling-off period post the vaccination.
In the battle against COVID-19 getting vaccinated is the most effective tool.
Say Yes to Vaccine and Caution!
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