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Experts say vaccine status will also help in underwriting people with co-morbidities such as diabetes and hypertension, as people with 1st dose or both doses of vaccination will have an extra layer of protection
With many young people succumbing to Coronavirus, life insurers have started making changes in their underwriting policies. Insurers such as Tata AIA and Max Life have started demanding for Covid vaccination certificate before selling term insurance policies. According to experts, very soon all life insurers will start asking for the vaccination certificate.
SK Sethi, director and founder, RIA Insurance Brokers, said: “Within a few weeks all insurers will start asking for Covid-19 vaccination certificate due to a high number of casualties reported across the country. Tata AIA and Max Life have come out with changes in their underwriting guidelines. According to which for proposers attaching vaccine certificate will be an important document. It means that no policy will be issued if the proposer has not gone in for vaccination.”
Resistance by reinsurers
One of the reasons cited is the resistance by reinsurers for writing such business, as risks perceptions have changed globally leading to higher claims expectations. Experts say vaccine status will also help in underwriting people with co-morbidities such as diabetes and hypertension, as people with 1st dose or both doses of vaccination will have an extra layer of protection.
Also Read: Vaccination advantage for insurance cover
The question arises when the vaccines are not so easily available will it be easy to buy term insurance policies in this changed scenario. “Insurance penetration is very low in the country. Very few people buy a term policy. Availability of vaccine should not be a problem for those who want to buy an insurance policy,” added Sethi.
Earlier Reliance General Insurance announced giving a one-time 5% discount on buying or renewing insurance cover to those customers who have taken the Covid-19 vaccines. Customers who have vaccinated themselves even with the first vaccination dose are eligible to avail of this benefit.