Financial lessons from a father and son’s fight against COVID-19

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Most of us learn money lessons the hard way, especially when it comes to insurance. For Pragnesh Kumar Mehta, a Baroda-based electrical supplier, it was a long recovery from COVID-19. Mehta was hospitalized for almost 22 days last year, when the nature of the infection was unknown. His family was taken aback by the unexpected chain of events that unfolded. Mehta, who was already diabetic suffered from severe symptoms and required intense medical care at that time. He even survived a minor heart attack during treatment. While all this happened, his family could not even see him, as per the safety protocols. His younger son, Jay, who works as a Senior Engineer in Gujarat Fluorochemicals recalls the incident as heavily exhausting the family’s physical, mental as well as financial status.

“At first, we admitted my father to a private healthcare facility authorized for COVID-19 treatment, but after a day we realized it is difficult for us to bear an expense of Rs. 40,000 each day. We immediately shifted him to another government-affiliated hospital where he would be better-taken care of” says Jay. Though Jay and his elder brother were managing the crisis he specifically recalls the time when it became very difficult for them to see their mother bearing a huge emotional and financial burden.

The only financial relief they did get was from Mukhyamantri Amrutum Yojana, a health scheme by the central government for the low-income families residing in Gujarat. However, the scheme did not cover the expenses of cost heavy injections and several treatment procedures, but it made Jay realize the importance of having health insurance during such uncertain medical emergencies.

And just while his father was recovering, Jay bought a COVID-19 specific health insurance policy, Corona Kavach for himself. But little did he know at that time, how soon he would need it.

In March 2021, Jay tested positive for COVID-19. However, this time the situation was under control both in terms of health and finances. Because of the Corona Kavach policy he had bought, he did not have to worry about the cost of treatment. His focus was solely on his health and recovery.

Jay’s story is not rare, and many could relate with it. With the number of active Covid-19 cases rising every day, the threat of the virus is far from over. As per the Ministry of Family and Health Welfare on 13th April 2021, the total number of active cases in India are more than 13 lakh. The virus has impacted the physical and financial health of almost every individual. The pandemic reiterates the importance for health insurance.

Recent data from Policy Bazaar, an insurance aggregator, also showed a rise of 33 per cent in the penetration of health insurance policies especially high sum insured policies, between 2019 and 2021. As per the data, out of the total health insurance policies sold by the aggregator, 35 per cent of the policies had Rs 5 lakh cover. The trend also shows that while buying such policies individuals are looking for options that give them maximum coverage benefits, affordable premium yet high insured coverage.