Worries over high medical costs for Covid-19 treatment are pushing a number of people to look at high-value health insurance covers of as much as ₹1 crore.

Insurers say that while the overall average sum insured for health insurance has increased to at least ₹5 lakh, many are even taking up policies of ₹1 crore.

“Of late, there is demand for ₹1 crore sum-insured health insurance covers. Earlier, there was not so much of demand. With the kind of expenditure incurred in Covid-19 treatment, many people are looking at such policies. Also, there isn’t a huge increase in premium if a person moves from a ₹20 lakh policy to ₹1 crore cover,” said Rakesh Goyal, Director at Probus Insurance. There are also additional features in such high net policies with global insurance cover. This is not a mass market product, he further said.

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Vivek Gambhir, Senior Vice-President and Product Head - Accident and Health at Tata AIG General Insurance also said there is a move towards higher sum-insured with the average size being between ₹5 lakh and ₹10 lakh.

“Some companies are also offering ₹1 crore policies,” he said.

Higher medical inflation

Gambhir, however, attributed this high sum insured to not only Covid -19 but also to increased medical inflation over the last four to five years. “Covid has had an impact but in the last four to five years, the average room rent has increased significantly. So, average claim size also increases,” Gambhir added.

While many first-time customers are purchasing health covers of ₹1 crore, others with existing policies are also going for a top-up cover.

“In severe Covid cases, often long duration on a ventilator or even ECMO is needed. A high value policy can take care of such expenditure,” noted an executive with another insurance company, pointing out that many insurers were offering such covers even in the past.