Based on early data from insurers, most of the buyers of the standard short duration COVID-19 policy sold by all general and health insurers in India, Corona Kavach, are in the age group of 20-30 years.
The policy offers a sum assured between $670 and $6,675, and a policy period from three-and-a-half months to nine-and-a-half months.
Max Bupa Health Insurance MD and CEO Krishnan Ramachandran told Indian newspaper Business Line, “The highest purchase of our Corona Kavach plan is by millennials, as 43% of the buyers are in the age group of 18-30 years.”
“It reflects that millennials, who are usually not keen on buying health insurance, have become more serious about health cover as they realise its benefits during pandemics like COVID-19,” he said.
The head of under-writing of a major private insurer said, “The number crunching is still on. The share of youngsters in the total number of policies being sold could be much higher if one also analyses their presence in family floaters.”
There are several factors that could explain the popularity of Corona Kavach.
People seem to be expecting the pandemic to go on for a while more, as suggested by the greater demand for policies ranging from six-and-a-half months to nine-and-a-half months – the upper limit of the available policy period.
Bajaj Allianz General Insurance head retail underwriting Gurdeep Batra said, “The product is picking up fast, as people look towards safeguarding themselves against the immediate health risk and the consequent medical expenses due to this pandemic.”
He said, “Considering the treatment costs for COVID-19, we have observed that people are opting for the higher side of the sum insured of $2,675 to $6,675.”
The Business Line report said the pricing of the policy, which is deemed affordable by most young urban working people, and the ease of buying it online, are other factors contributing to its popularity.