Insurers slow down on telemedicine facility amid Covid-19; insist on laboratory test for term insurance

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With the increase in mortality rate due to Covid-19, insurers have stopped offering telemedical facility for buying term insurance policies. Instead, customers have been asked to undergo the laboratory test and have certified medical reports for buying a term insurance policy. According to experts now around 70% of cases require medical check-up as against 50% during the pre-Covid period. The entry barriers have been placed in tune with the rising severity and deaths due to Covid-19 across the country.

“In the wake of Covid-19 impact and increased mortality rate, term insurance companies have been feeling the heat due to multifold increases of claims. Hence in order to reduce the risk, the insurance companies have completely removed the telemedicine facility. It was quite a convenient method of buying insurance for the people, however, now, there is a mandate to undergo the laboratory test and have certified medical reports of the applicant,” said Naval Goel, founder and CEO, PolicyX.com.

Faster Medical-Check

The good news in line with these new requirements the time taken for medical tests completion has been reduced to four days in June compared with 8 days on average in April and May.

“April and May saw a delay due to a mix of events like the strain on medical infrastructure, restrictions on movement in various locations, customers acceptance to let someone come home to collect samples or to go out for tests where necessary. June saw all of this being relaxed and has turned out to be a good period for customers in being able to complete medical tests requirements faster,” said Sajja Praveen Chowdary, Head- Term Insurance, Policybazaar.com.

Impact on Demand

Insurance companies are also providing home health care check-up facilities with the reduced time taken between the check-up and its results.

“This is complete customer convenience and customer service offered by the insurance companies. While this comes as a helpful feature but this hasn’t laid any major impact on the sales as the figures remain constant in June,” said Goel.

“With the number of Covid-19 cases coming down, people have become relaxed. While we saw a 30% jump in demand during April and May, it has come down by 10% in June. When the wave was happening the demand was much higher. But it is advisable to buy insurance now as it could become costlier if the third wave hits the country,” added Praveen.