Besides its debilitating health impact, Covid is draining the finances of its victims, particularly the uninsured, causing some to get into long-term debt.
While 49-year-old Mukund Murli got away with a Rs 20,000 bill for his hospital stay due to a health cover purchased by his employer, fellow Chennai resident S Hari Charan had to take a personal loan, which requires him to pay an EMI of Rs 6,500 for four years to clear his hospital bill.
The surge in cases and the subsequent capacity constraints are forcing the middle-class to avail of private healthcare services they cannot afford. Manoj Dubey found himself paying out-of-pocket to the extent of Rs 5 lakh after his two children and uninsured aged parents were hit by Covid, requiring hospitalisation.
The MD of Star Health, S Prakash, said insurers settle 90% of required medical treatment costs and at least 50% of protective equipment. “For the premium one pays, he gets tax breaks, and a continuing policy will give the policyholder accruing benefits. We are seeing more people signing up for policies now,” said Prakash. Insurance aggregator InsuranceDekho’s co-founder & CEO Ankit Agarwal said, “In the current scenario, customer awareness around the need for protection has increased. The pandemic is changing the dynamics of the general insurance industry. Health insurance having overtaken the motor insurance business for the first time ever to emerge as the largest portfolio in the general insurance industry.”
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