Pandemic pushes sales of 1 crore health covers

BENGALURU: Insurers are upselling health insurance to customers by skewing their pricing in favour of high-value policies. A Rs 1 crore health insurance cover is available for as low as Rs 18,000 for a 30-year-old. As a result, a third of all health insurance premiums is now coming from the sale of high-value policies.

“There has been high claims experience from the Rs 1-25 lakh segment. So premium rates shot up 50-100% there. And since the Rs 25 lakh -1 crore segment is fairly new, premium rates are low — an indirect benefit of cross-subsidy,” said Biresh Giri, appointed actuary and CRO, Acko Insurance.

Insurers say the concept of Rs 1 crore insurance covers first started with the life insurance industry, and it is a new pandemic-induced trend for the health insurance industry. Roughly, a family of three — a couple and a child — would have to pay Rs 25,000- 35,000 for a sum insured of Rs 25 lakh-1 crore, and an individual might be able to pay as low as Rs 18,000 yearly. A fact insurers are capturing by advertising: “If you are paying Rs 500-700 for your mobile bill, why not shell out the same for a health policy?”