As the majority of Indians feel most stressed because of their concern about physical health during the Covid-19 pandemic, demand for health insurance products are on the rise. To grab the opportunity created by the spike in demand, an increasing number of insurance companies are entering into the health insurance space.
In the first 6 months of the Financial Year (FY) 2020-21, insurance companies have seen strong growth in health business with an overall growth rate of 29 per cent year-on-year (yoy).
While the growth rate in retail health stood at 41 per cent yoy, that of group health has witnessed an even stronger rate of 46 per cent yoy.
Compared to the first quarter (Q1), the rate of growth was stronger in the second quarter (Q2) of the FY 2020-21 with standalone health insurers reported 41 per cent yoy growth in health insurance driven by 56 per cent yoy growth in retail health insurance.
While the private sector insurance companies have reported a growth rate of 9 per cent yoy in the health business, PSUs have registered a growth rate of 33 per cent yoy.
Covid-19 pandemic makes health insurance a priority product among Indians
Going by the trend, private sector life insurer Kotak Mahindra Life Insurance Company Limited (Kotak Life) has forayed into the health insurance segment and announced the launch of a new comprehensive product – Kotak Health Shield – a fixed benefit, comprehensive health insurance plan.
Bollywood actor and cancer survivor Sonali Bendre has unveiled the health insurance plan that covers most critical illnesses such as Cancer, Cardiac, Liver and Neuro – all under one single product.
Apart from the wide coverage, other benefits of the health product include daily hospitalisation cash benefit, waiver of premium on being diagnosed with minor conditions, and income benefit on being diagnosed with major conditions / critical illness.
Along with the health insurance cover, the plan also provides tax benefits on premium paid under Section 80 (D) of Income Tax Act, 1961.