The 2019-20 coronavirus pandemic is an ongoing pandemic caused by severe acute respiratory syndrome coronavirus. The outbreak was identified in Wuhan, China, in December 2019. The World Health Organization declared a Public emergency on 30th January and a pandemic on 11th march. As of 1st May 1, 2020, more than 3.25 million people cases have come up.
Will The Insurance Companies Come Up?
The most important question that concerns almost everyone is whether their insurance company will cover coronavirus? As ethics are concerned, nearly every insurance company claims that they will support us during every crisis so that our family is not under a huge financial burden. But, many sources claim that insurance companies might not pay any sum in case of death due to coronavirus. Due to the increase in the number of worldwide cases applying for insurance has become very complicated.
Till now, most insurance companies are ready to pay an amount or beneficiary to the deceased in case of death by coronavirus. The only problem that arises is the increased complications if a person wants to purchase a new policy. Many sources earlier claimed that due to the conditions of the pandemic insurance companies might not cover coronavirus, but later it was clarified that every insurance company would include coronavirus. At this stage, special coronavirus insurance has been developed by many insurance companies. These have a high premium cost at this difficult phase of life. Hence, it is essential to have a cover that supports us during rough times as these treatments can be costly. Also, it is difficult for many people to arrange such huge funds at such times when jobs are at stake.
Many experts believe that in more than 82% cases insurance claims were not cleared or not claimed due to other reasons, but at the time of such pandemics, many finance experts feel that this may be the time when an insurance company might face losses.
Quite a few questions arise from this. Do the companies have sufficient money to pay such massive amounts? Is my insurance company reliable? A vaccine for this disease is now the most awaited thing that one needs to hear. Everyone is looking out for the time when they would no longer be afraid of this disease as they would have reliable insurance and vaccine as support.
Some sources like ‘Economictimes’ and ‘Thehindubusinessline’ suggest that at this time of worldwide lockdown many companies might not have a backup of even two months. They also claim that many insurance companies might have sufficient funds in regard to the rising cases of this pandemic so it is very confusing that whether our insurance company is reliable or they might crash down at this global threatening situation.
What Does The Common Man Think?
This pandemic has created a significant threat but at the same time what people fear more is that they might not have a support. Many people have the fear that they may lose their jobs. As financial stability is still a challenge to many companies, what people fear is inefficient health facilities as they have an insecurity about their health and life insurances. Another problem is improper treatment and over-exploitation of ordinary people.
A common man faces challenge even while paying a premium of insurance. So, such expensive treatments and diagnosis frighten them. After lots of fake news, it clarified by stating that all insurance companies shall pay the amount to the virus victims for treatments and also to beneficiaries in case of deaths. Such actions give nothing but confidence to people that in such times they are not alone; the company will support them.
From The Company’s Viewpoint
As lockdown prevents all kind activities, so many companies are facing problems. The biggest challenge is managing their funds. They still have huge expenses but their income sources have almost shut down.
Many people are now planning to buy special insurance for coronavirus out of the fear. The biggest fear for people is that they might lose their life and their family would have no support after them. As many people have less awareness, they are easily attracted towards fake news so they believe some artificial sources out of fear and later on this creates a problem for them as they get confused between what an authentic source says and what they earlier heard from an unauthorized source.
At this time, many insurance companies are even offering premium rebates. As per ‘insurance-business mag,’ insurers are offering a 10.5 billion dollar rebate. As there is increasing risk of coronavirus across the globe and many companies and businesses are not performing up to the mark. So, people fear that if anything happens to them, they would be helpless as companies would not be able to pay them their benefits, pension to their family and their insurance would be worth nothing as many companies do not even have enough funds to pay their employees. The biggest question that arises is that can your insurance company pay you tomorrow if cases get even worse? Will they be able to pay your beneficiaries?
At The End Of The Day, Is The Company Reliable?
The answer to every question lies in front of us. To know if your insurance company is reliable or not one can check their performance. What are their outstanding payments have they earned good profits in the past quarters against the money they took? Such questions can help us know whether our insurance company is reliable enough or not. As per government advisory, it is mandatory for all insurance companies to pay the necessary amount or beneficiaries to victims. The government is giving food aid and monetary help to many people. Similarly, the government might launch its own health care schemes. That might include compensation of victims who could not afford insurance as a help.
According to sources, special coronavirus insurance is helpful because it might help people to get good support for their treatments. This special insurance might be having a high premium cost, but it is also the answer for people who do not trust the insurance companies as this is especially for corona cases and is also reliable. At this stage, it is mandatory for companies to give pays of insurance clients they cannot hold any amount, but there are many companies who do not perform so well and are also under debt so reliability on them might be risky.
Most of the companies have themselves said that they included coronavirus to avoid miscommunication. The word spread that insurance will cover coronavirus. But, reliability is a problem as poor-performance might cause the company not to be able to settle claims in time. Hence we can conclude that yes your company will pay you your insurance claim. But, the problem is that if they are not efficient what shall we do? Then we cannot purchase the insurance on a daily basis. So, the performance of the company is what matters as companies are paying all insurance claims. So we can expect that there would not be any problem in the payment. But again some companies may face a shortage of funds. So, we have to be careful in monitoring their performance so that we do not face any problem.
The companies will pay all claims, but some may face problems due to lack of funds. At this time everyone must stay aware of everything and clarify news so that it does not cause miscommunication. Insurance companies will support us only if we support humanity and stay at home to stop the spread.