NEW DELHI: In the backdrop of the raging coronavirus pandemic, it has been observed that most people have been renewing their health insurance policies on time so that they can avoid problems that arise out of missing the due date.
According to a study by Policybazaar.com, over 85% of all family-floater health insurance policies sold last year were renewed before expiry. Also, roughly 80% of customers with individual health insurance plans renewed their policies by the scheduled deadline.
Amit Chhabra, Head-Health Insurance, Policybazaar.com said, “People are terrified that the novel coronavirus will infect them at anytime, anywhere, and have realized that the only way to protect themselves financially from the pandemic is to invest in a comprehensive health insurance plan. Surprisingly, the number of people renewing their health insurance policies this year is much higher than in previous years.”
According to the online insurance marketplace, renewal rate for customers with individual health policies older than a year was 94%, while the same was 97% for family floater plans. Such high renewal rates indicate that while the initial decision to purchase a health insurance policy may have been influenced by the ongoing pandemic, people have gradually realised the role insurance can play in securing the best possible health care facilities without having to worry about the cost.
By renewing health insurance policy by the due date, one gains access to a slew of continuity benefits such as uninterrupted coverage, No-Claim Bonus benefits, and no new waiting period.
Another noteworthy trend has been that consumers are now using their ‘wellness points’ during health insurance renewal to obtain premium discounts. Over 20% of people who purchased health insurance plans in March and April last year renewed their policies through wellness points this year. This demonstrates how people have gradually begun to shift toward a preventive mindset.
“When it comes to health insurance, a significant number of consumers have shown a proactive interest in staying healthy and have requested wellness-oriented health insurance plans over the last two years. Recently, there has been an increase in products that reflect daily priorities or life goals,” said Chhabra.
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