NEW DELHI: With millions of Indians losing their jobs following the adverse impact of the deadly coronavirus (COVID-19) outbreak and financial uncertainty, several Indian insurers have launched job loss insurance products to provide affordable cover and EMI relief on losing income.
These job loss insurance products are likely to provide a big relief to millions of Indians who are extremely worried about the future of their investments and financial liabilities arising due to job loss.
To deal with such a situation, the online insurance marketplace – Policybazaar – has also created a separate vertical dealing with the job loss insurance products. Up till now, these products were only available as an add-on benefit (to be purchased with an existing insurance cover) but customers can now buy them online.
Policybazaar has also teamed up with insurers like SBI General, Shriram General, and Universal Sompo among others. These products offer income replacement for a fixed period.
According to the figures provided by the National Statistical Office (NSO), India’s GDP in the first quarter of 2020-21 contracted by 23.9 percent and while the economy shows positive signs of recovery in recent months. The private sector is under extreme pressure to generate employment opportunities.
In such a scenario, the introduction of job loss insurance products will not only cover loss of income due to job-loss but even cover consumers if they are self-employed.
The insurance products offer coverage under two different conditions – first is when an individual loses job/income due to termination/lay-off or retrenchment, and the second is job/income loss due to disability or death.
In case, where the job/income is lost due to termination/layoffs or retrenchment, the plan helps by paying off loans for up to three months. In case, job/income is lost due to an accident resulting in death, partial or permanent disability, or disablement, the insured can get weekly salary benefits for up to two years.
There are different plans available for both salaried and self-employed individuals, and benefits offered under both, the categories vary from one plan to another.
In case of job loss due to termination/layoffs or retrenchment, the insurer pays the insured’s loan installments for three months (the installment amount is subject to the customer’s existing EMI).
The coverage for loss of income/job due to partial or permanent disability includes weekly salary benefits ranging as high as Rs 1 lakh per week (subject to customer’s net salary) for a maximum of 100 weeks.