In times like these, when the world is riddled with COVID-induced challenges, a comprehensive term insurance policy is a must-have, says Prashant Tripathy, managing director, and chief executive officer at Max Life Insurance.
In an interaction with The New Indian Express, Tripathy speaks at length why it is worthwhile to consider investments in guaranteed saving products to secure a family’s future, major changes in the insurance sector, and more. Excerpts:
What are the key things people should consider before taking up a policy in uncertain times?
In times like these, life insurance becomes an effective financial planning tool that provides multiple benefits ranging from protection, savings and guaranteed returns to tax benefits. When purchasing a life insurance policy, it is important to choose a plan that meets your requirements.
At the same time, while taking up a policy is to select the right sum assured on the basis of current earning and future potential.
A comprehensive term insurance policy is a must-have for almost everyone. It is also worthwhile to consider investments in guaranteed saving products.
How many Covid-related claims have you received so far? What are the key things you look at before settling these claims?
We have received 166 admissible Covid-19 death claims till August 19, 2020 and we have paid 138 such claims already with a claim amount of Rs 8.91 crore. For settling these claims, we are following a speedy settlement process once we receive mandatory documents. We are taking various steps to reach out to customers through alternate digital modes like SMS, WhatsApp, video calling with claimants. We have also requested claimants to submit complete medical records to enable us to settle claims as soon as possible.
Is your company offering products at comfortable T&C that cover mental and critical illness?
Our recent ‘India Protection Quotient Express’ survey revealed that when confronted by the thought that Covid-19 could prey on the individual and/or family, 31 per cent respondents in metros and 20 per cent in Tier 1 cities said they bought a life insurance with Covid-19/critical illness rider. This suggests that consumers are increasingly banking on life insurers for assurance in times of uncertainty, and insurance companies. At Max Life, we are offering riders and optional benefits which provide insurance against certain defined critical illnesses. For new life insurance policies, an applicant with mental illness is appropriately underwritten. We are also in the process of addressing the core needs of customers with our new policies specific to the post-COVID-19 era.