Loss of Job/Income Insurance
One of INDIA's leading online insurance marketplace launched a new type of vertical called Loss of Job/Income Insurance. Currently, they added similar products offered by some insurers such as Aditya Birla, SBI General Insurance, Shriram General Insurance, and Universal Sompo.
The COVID-19 pandemic and the lockdown had a significant impact on the economic activities of INDIA.
Sarbvir Singh, CEO of Policybazaar.com said on the development that" The growing middle class in the country needs options to safeguard themselves from sudden financial shocks as they tend to have liabilities of paying monthly installments to service loans. A loss of job/income insurance is the right policy to own to protect from such eventualities.
India's GDP in the first quarter of 2020-21 contracted by 23.9 percent and despite the economy is showing positive signs of recovery, the private sector is still under the pressure to generate employment opportunities.
Currently, in the insurance market, job/income loss insurance covers are not popularly sold. The major highlight of some insurance plans is that they not only cover loss of income because of job-loss but cover the consumers who are self-employed.
The plan covers the loss under two different conditions...
The first condition is the loss of job/income due to termination or retrenchment.
The second condition is where the loss of job/income due to disability or death.
Written by: Kalpesh Agrawal (Actuarial Intern- IIB)