These 4 types of insurance cover can become essential post coronavirus pandemic

Following the pandemic, there has been a rise in demand for other insurance policies and covers such as cyber, home, usage-based, sachet insurance, among others. (Photo: iStock)

NEW DELHI: Health insurance no doubt has been the most bought insurance policies during the pandemic, but there has also been a rise in demand for other insurance policies and covers such as cyber, home, usage-based, sachet insurance, among others.

“The uncertain year of the pandemic has pushed the health insurance awareness a notch up with customers opting for the standalone corona cover or going for a comprehensive health insurance cover too,” said Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance. “With business losses, we also saw an increase in queries for property insurance which shows a healthy increase in the overall need for insurance.”

According to experts, these insurance policies/covers have seen significant in the aftermath of covid outbreak:

Cyber Insurance

There has been a substantial increase in the threat to cybersecurity for an individual and at the corporate due owing to work from home model and an increase in dependency on technology. A rise in sophisticated cyber crimes has heightened vulnerability to cyber attacks.

“A cyber-insurance policy will see a surge since it covers risks such as identity theft, malware attack and cyberstalking which covers financial losses resulting from being an innocent victim of e-mail spoofing, phishing, I-T theft and cyber extortion amongst other features,” said Singhel.

Home Insurance

According to experts, there has been a year-on-year increase in natural calamities in India along with uncertainty about frequency and the magnitude of damage. Consumers residing calamity prone regions can consider buying a home insurance policy in order to be protect themselves from sudden, untold loss.

Usage-based products

Usage-based insurance products such as opting for motor insurance based on the number of kilometres a vehicle has travelled, or in other words pay as you consume, has seen a surge.

“People are now preferring to travel by their vehicle rather than opting for public transport due to the susceptibility of infection and would prefer to opt for usage-based insurance since the frequency of the movement has also reduced,” said Singhel.

Sachet insurance

Sachet insurance products are small-ticket or bite-size insurance covers. These products cover specific diseases, ailments, and are very cost-effective, that is, covers are offered at a very low premium for a specific time duration.

Singhel said, “First-time buyers can prefer to opt for sachet insurance since these consumers are wary of the benefits of insurance, and may prefer to opt for a lower premium, lower cover products.”

However, it is pertinent to note that one should opt for comprehensive insurance options where needed, in order to have wider coverage and better protection.

(Do you have a personal finance query? Send in your queries at [email protected] and get them answered by industry experts)

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