A

MAJOR RESEARCH PROJECT

ON
“COVID 19 MOVE OF INSURANCE COMPANIES: A
STUDY OF OPINION OF PRIVATE EMPLOYEES
ABOUT AWARENESS AND MERITS OF SUCH MOVES”

Submitted in the partial fulfillment for the award degree of

Masters of Business Administration (2018-2020)

At

FACULTY OF MANAGEMENT STUDIES

MOHANLAL SUKHADIA UNIVERSITY, UDAIPUR

Submitted by: Under the guidance of:

Rahul Khichi Prof. Hanuman Prasad
M.B.A.CMAT 4th Semester Faculty of Management Studies
 CERTIFICATE

This is to certify that Rahul Khichi, student of MBA CMAT IVth Semester, Faculty of
Management Studies, Mohan Lal Sukhadia University, Udaipur has completed her Major Research
Project on the topic “COVID 19 move of insurance companies: A study of opinion of private
employees about awareness and merits of such moves” as a part of curriculum for fourth
semester under my supervision and she has completed her work satisfactorily.

Prof. Hanuman Prasad Place: Udaipur

Project Guide Date:

i
 DECLARATION

I hereby declare that the major research project report entitled “COVID 19 move of insurance
companies: A study of opinion of private employees about awareness and merits of such
moves” under the guidance of Prof. Hanuman Prasad submitted in partial fulfillment of the
requirement for the award of degree of Master of Business Administration, Faculty of Management
Studies, Udaipur. It is my original work and the same has not been submitted for the award of any
degree, diploma, fellowship or other similar titles or prizes to any other institution/organization or
university by any other person.

Rahul khichi
 ACKNOWLEDGEMENT

It is the fortune to find the opportunity to express my deep sense of gratitude to all the people who
have helped me with their guidance and assistance, without which the project would not be
possible. Their contribution is invaluable. I sincerely appreciate the inspiration, support and
guidance of all those people who have been instrumental in making this research project a success.

I would like to pay my sincere regard to Prof. Hanuman Prasad, Director, Faculty of Management
Studies, MLSU (Udaipur) for arranging such a research project work where we could learn the
fundamentals of research work. It just opens up our vistas for research work through practical work.
`

I would like to express my heart-felt gratitude and respect to Prof. Karunesh Saxena, Prof. Anil
Kothari & Prof. Meera Mathur for giving the precious time, incessant encouragement and
guidance to make the project a success. He has been instrumental in shaping my opinions about the
task at hand by holding out fruitful and result- oriented discussion supported by constructive
criticism.

I would also like to thank all the faculty members of F.M.S. College for their critical advice and
guidance without which this project have not been possible.

Last but not least I place a deep sense of gratitude to my family members and of my friends who
have been constant source of inspiration during the preparation this research project work.
 PREFACE

The Major Research Project has been conducted and completed as an opportunity to learn the
concepts of conducting a research as a part of my Master of Business Administration curriculum.

The research has been done to study “COVID 19 move of insurance companies: A study of opinion
of private employees about awareness and merits of such moves and adoption of covid 10 by
insurance companies.

Subject to the limitation of time efforts and resources every possible attempt has been made to
study the problem deeply.

I hope that this study is of use to the readers and people concerned and also fulfill the requirements
of MBA specialization
 EXECUTIVE SUMMARY

The research has been done to study "COVID 19 move of insurance companies: A study of opinion
of private employees about awareness and merits of such moves" The main objective of the
research is to find out the level of awareness of insurance companies move in the private sector
employees regarding covid 19 and to have in depth knowledge of private sector employees faces
the problem with insurance companies during such pandemic

This report is mainly divided into five chapters:

The first chapter consists a brief explanation of insurance and its various types and gives the idea
of impact of covid 19 on insurance sector.

The second chapter of the report includes review of literature which includes text of rescarch
papers which take into account of knowledge, findings as well as theoretical contributions to a
particular topic.

The third chapter is on Research methodology which includes statement of problem, objectives of
the research, research design. It mainly focuses on how research work has been carried out.

The fourth chapter consists of data analysis and interpretation. This analysis is done on the basis
of secondary data collected from various sources.

The fifth chapter summarizes the findings and conclusion given by the researcher and the rest of
the pages include references.
 TABLE OF CONTENT
S.N. Particular Page no.
1 Introduction 1
1. Insurance 1
1.1 Life Insurance 2
1.2 Health Insurance 6
2. Insurance Regulatory & development of India (IRDA) 8
3. Role of IRDA in the Insurance Sector in India 10
4. Insurance Companies provide Covid 19 focused plans. 12
5. Potential Implications on Covid-19 of the Insurance Sector. 13
6. Impact of Covid-19 On Insurance Companies 18
7. Covid -19 Impact on Insurance sector 19
2 Review of literature 24
3 Research methodology 26
4 Data analysis & interpretation 29
5 Conclusion 43
6 Bibliography 45
7 Annexure 47
 CHAPTER – 1
INTRODUCTION
 INTRODUCTION

1. Insurance

What is insurance?

 INSURANCE is a practice or arrangement by which company or government agency

provides a guarantee of compensation for specified loss, damage, illness or death in return
for a payment of a premium.

 In some sense, it's a thing providing protection against a possible eventuality.

 A contract in which an individual or entity receives financial protection or reimbursement

against losses from a company. make The company pools clients' risks to payments more
affordable the insured.

Importance of insurance

• Provides protection against occurrence of uncertain events.

• Co-operative method of spreading risks.
• Facilitates international trade.
• Serves as an agency of capital formation.
• Financial support.
• Medical support.
• Source of employment.

Types of insurance
Insurance industry in India
1. Life insurance

2. General insurance
• Motor insurance
• Fire insurance
• Health insurance
• Marine insurance

1
1.1 life insurance

You probably have at least some idea of what life insurance is. Something about making sure
there's money for your family if you pass away. If that's what you're thinking, you''ve got the basic
idea. The purpose of life insurance is to help you protect your family financially when you aren't
around. It pays them money (called a "death benefit") they need to cover funeral expenses,
mortgage payments, car payments, and other monthly bills. Or to help with big, long-term expenses,
like your kids' education. The money your loved ones receive is almost never counted as taxable
income. In other words, the payout is typically tax- free.

1.1.1 What is Life Insurance?

A life insurance policy is a contract with an insurance company. In exchange for premium
payments, the insurance company provides a lump-sum payment, known as a death benefit, to
beneficiaries upon the insured's death. Typically, life insurance is chosen based on the needs and
goals of the owner. Term life insurance generally provides protection for a set period of time, while
permanent insurance, such as whole and universal life, provides lifetime coverage. It's important to
note that death benefits from all types of life insurance are generally income tax-free.
There are many varieties of life insurance. Some of the more common types are discussed below.

• Term life insurance

Term life insurance is designed to provide financial protection for a specific period of time,
such as 10 or 20 years. With traditional term insurance, the premium payment amount stays
the same for the coverage period you select. After that period, policies may offer continued
coverage, usually at a substantially higher premium payment rate. Term life insurance is
generally less expensive than permanent life insurance.

Needs it helps meet: Term life insurance proceeds can be used to replace lost potential income
during working years. This can provide a safety net for your beneficiaries and can also help
ensure the family's financial goals will still be met-goals like paying off a mortgage, keeping a
business running, and paying for college. It's important to note that, although term life can be
used to replace lost potential income, life insurance benefits are paid at one time in a lump
sum, not in regular payments like paychecks.
• Universal life insurance

Universal life insurance is a type of permanent life insurance designed to provide lifetime
coverage. Unlike whole life insurance, universal life insurance policies are flexible and may
allow you to raise or lower your premium payment or coverage amounts throughout your
lifetime. Additionally, due to its lifetime coverage, universal life typically has higher premium
payments than term.

Needs it helps meet: Universal life insurance is most often used as part of a flexible estate
planning strategy to help preserve wealth to be transferred to beneficiaries. Another common
use is long term income replacement, where the need extends beyond working years. Some
universal life insurance product designs focus on providing both death benefit coverage and
building cash value while others focus on providing guaranteed death benefit coverage.

• Whole life insurance

Whole life insurance is a type of permanent life insurance designed to provide lifetime
coverage. Because of the lifetime coverage period, whole life usually has higher premium
payments than term life. Policy premium payments are typically fixed, and, unlike term,
whole life has a cash value, which functions as a savings component and may accumulate tax-
deferred over time.

Needs it helps meet: Whole life can be used as an estate planning tool to help preserve the
wealth you plan to transfer to your beneficiaries.

1.1.2 Benefits of Life Insurance

1. Risk Coverage: Insurance provides risk coverage to the insured family in form of monetary
compensation in lieu of premium paid.

2. Difference plans for different uses: Insurance companies offer a different type of plan to
the insured depending on his need for insurance. More benefits come with the more
premium.
 3. Cover for Health Expenses: These policies also cover hospitalization expenses and critical
illness treatment.

4. Promotes Savings/ Helps in Wealth creation: Insurance policies also come with the
saving plan i.e. they invest your money in profitable ventures.

5. Guaranteed Income: Insurance policies come with the guaranteed sum assured amount
which is payble on happening of the event.

6. Loan Facility: Insurance companies provide the option to the insured that they can borrow a
certain sum of amount. This option is available on selected policies only.

7. Tax Benefits: Insurance premium is tax deductible under section 80C of the income tax
Act, 1961.

• General insurance

• Insuring anything other than human life is called as general insurance.

• Examples are insuring property like house and belongings against accidental damage or
theft.

• Injury due to accident or hospitalization for illness and surgery can also be insured.

• General insurance or non- life insurance policies, including automobiles and

homeowner’s policies, provide payments depending on the loss from a particular
financial event.

Various types of general insurance

 Health insurance
 Fire insurance
 Marine insurance
• Fire Insurance
A fire insurance is a contract under which the insurer in return for a consideration agrees to
indemnify the insured for the financial loss which the latter may suffer due to destruction of
or damage the property or goods, caused by fire, during a specified period.

• Marine Insurance
• This policy covers goods, freight and other interests against loss or damage to goods
which is transported through road, sea or air.
• Marine insurance covers the loss of ships, cargo, terminals and any other transporter
cargo by which property is transferred.
1.2 HEALTH INSURANCE

Health Insurance is a type of insurance that offers financial coverage for medical expenses, in case
of a medical emergency. A health insurance plan provides insurance coverage to the insured with
multiple benefits, including cashless hospitalization, day-care facility & coverage for terminal &
critical illness etc.

What is a Health Insurance Policy?

A health insurance policy is a contract between the insurer and policyholder in which insurance
company provides financial coverage for medical expenses incurred by the insured. A health policy
provides benefit of reimbursement of medical expenses or cashless treatment mentioned in the
health policy.

Apart from the medical coverage, Health Insurance plans also offer tax benefits under section 80D
of the Income Tax Act, 1961.

Following are the key benefits of a health insurance policy that one can consider:

1.2.1 Cashless Medical Treatment:

Every medical insurance company has tie-ups with various nursing homes and hospitals
across the country called 'empanelled hospitals'. If you are admitted to one of these, you don't
need to pay anything. You only need to mention your policy number and everything else will
be taken care of by the hospital and your insurer. These types of health insurance plans are
preferred because there is no stress of claim reimbursement and These types of health
insurance plans are preferred because there is no stress of claim reimbursement and
documentation. However, if your expenses go beyond the sub-limits specified by the
insurance cover or marked as not covered by the provider, then you will have to settle it
directly with the hospital. Another important thing to remember is that cashless mediclaim is
not available if one gets hospitalized which is not a part of the hospital network of the
insurance company.
1.2.2 Coverage of Pre and Post- Hospitalization Expenses:

This feature of a health insurance policy takes care of expenses incurred on both pre and post-
hospitalization. It takes into account the costs incurred during a certain number of days both
prior to and post hospitalization as part of the claim, provided the expenditures are related to
the covered disease/illness.

1.2.3 Ambulance Fee

Once hospitalized the person is free from the burden of transportation fees as it is borne by
the insurer.

1.2.4 No Claim Bonus

NCB (or No Claim Bonus)

is a bonus provided to the insured if no claim has been filed for any treatment in the previous
policy year. The reward can be offered either as an increment in the sum assured or as a
discount on the premium cost. You can avail this advantage on policy renewal.

1.2.5 Medical Check-Up Facility

A medical plan entitles the insured to receive regular medical check-ups. A free check-up
facility is provided by some insurers, or you can get it as an add-on benefit.
 2. Insurance Regulatory and Development Authority (IRDA)

IRDA is the regulatory body in India that governs both Life insurance and General insurance
companies. India is a vast country that offers great opportunities to varied segments one of which is
the insurance sector.

Let us understand the concept of insurance regulator in a simple way. India witnesses the concept of
a joint family where the head, most commonly the grandparents, acts as the guardian of each
member. The head takes care of everyone’s needs and maintains a balance for fair practices to keep
the family united. He treats everyone equal and helps the family in crisis guiding them on how to
steer out of it. Now, similar to how the head of the family plays, IRDA runs the Indian insurance
industry as per its set rules and guidelines.

• purpose of IRDA

Insurance in India dates back to the year 1850 with the first General Insurance company
established in Calcutta. Soon, with the passage of years the market became competitive as
many insurers started emerging both in life and non-life sectors.

Each company practised business on its rates and rules. It made customers’ insecure which
brought the credibility of the insurance market at stake. As early as the government realized
this fact, they thought of securing the customer’s interest first and hence established an
independent regulatory body called IRDA.

Over time, new demands rolled and the market got flooded with several insurance products.
Like a responsible head of the family would act to prevent the family from any damage,
IRDA monitors the development of the insurance industry and other related activities.

• How does IRDA work?

Consider that to run any professional set-up or otherwise, it is very important to maintain
decorum. And so, the one who breaks the rule and disturbs the peace needs to be checked
immediately. Similar to this, IRDA works and acts as mentioned below in different situations.

IRDA is an autonomous body with the only mission to regulate fair practices in the insurance
market to prevent loss of customers. The industry is now expected to reach US$280 billion by
the year 2020. It poses that there is a long way to go and hence there arises a dire need for
IRDA actions.

To keep up the growth, here is how IRDA works:

 To protect the interest of policyholders at the time of claims, issuance of the policy,
and cancellation of the policy is the ultimate motive. Hence, it monitors that no
insurance company can deny the claim on their free will unless it falls beyond the
scope of the cover. There is a need to tame the market to a single tune which brings
the players together and then compete with each other simply based on the discounts.
And so, IRDA clearly states the code of conduct for all insurance companies,
surveyors, and loss assessors.

 To prevent any misdeed, it calls for both annual and need-based audit, conduct
investigation, call for information from either the insurance companies or
intermediaries.

 Regulate the rates and terms offered by the insurance companies to bring equality for
the customers. If there arises any dispute between the insurer and the policyholder,
then IRDA will step in to provide a resolution.

 To prevent different insurers quote rates as per their convenience, they bound the
major risks to the Tariff Advisory Committee. After this, the insurers keep in mind the
percentage of premium income they would need to fund the professional
organizations.
 Keeping in mind the development of both the urban and the rural sector, IRDA bounds
the insurers with a minimum percentage to carry both life and non -life business.
 The scope of work is wide and IRDA as a body works abiding its limit without
favoring any single insurance companies.
 3. Role of IRDA in the Insurance Sector in India

At one point of time, some insurance companies used to deny coverage to their policyholders. The
basis of the denial was either their choice of business to underwrite or was their understanding of
good risk and bad risk. To regulate the market and minimize any sort of partial acts, the IRDA was
established.

Like the banking system in India is regulated as per the guidelines of RBI. It restricts the bankers to
not behave unruly with the account holders. The banking institutes are allowed to offer loans and
interest as per the rates pre-defined by RBI. It leaves no room for the monopoly to take over which
in turn works best for the masses. Financial Institutes like banks and insurance companies will be
successful in our democracy until market practices are for the majority and not just for fraction of
people.

 IRDA on the same lines of industrial practice plays a vital role like :

 Ensures and encourages the systematic growth of the insurance industry just to benefit
the common people who invest in policies to look for safety.

 Protects the interest of the policyholders so that they trust the system.

 Promote high standards of integrity and fair dealings in the market.

 Resolve disputes of all kinds and speed up claim settlement.

 Set standards and conduct vigilance to check for scams or frauds.

The Indian economy is growing which further promotes the entrance of new insurance players in
the market. To keep the pace of growth even-handed, IRDA needs to maintain standards of quality.
It will further contribute to strengthening the financial capacity of a country as a whole.
 Guidelines issued by IDRA during Corona pandemic

1. In respect of the products filed and cleared as per the provisions of Guidelines on product
filing in Health Insurance Business (Ref: IRDA/HLT/REG/CIR/150/07/2016) dated 29th
July 2016, where coverage is granted for treatment of hospitalization expenses, in order to
alleviate the hardships that may be caused to the policyholders, all claims reported under
corona virus shall be handled as per the following norms.

a) Where hospitalization is covered in a product, insurers shall ensure that the cases related
to Corona virus disease (COVID-19) shall be expeditiously handled.

b) The costs of admissible medical expenses during the course of treatment including the
treatment during quarantine period shall be settled in accordance to the applicable terms
and conditions of policy contract and the extant regulatory framework.

c) All the claims reported under COVID 19 shall be thoroughly reviewed by the claims
review committee before repudiating the claims.

2. In order to provide need based health insurance coverage, insurers are introducing products
for various specific diseases including vector borne diseases. For the purpose of meeting
health insurance requirements of various sections, insurers are advised to design products
covering the costs of treatment for Corona Virus.

3. These instructions are issued under the provisions of Section 14 (2) (e) of IRDA Act, 1999
and shall come in to force with immediate effect.

4. This has the approval of the competent authority.

 4. Insurance companies provide Covid-19 focused plan

Star Health and Allied Insurance Company are offering Star Novel Coronavirus Insurance Policy —
a product that provides lump sum benefit to the insured, aged between 18 to 65 years, who is
hospitalised and diagnosed positive with Covid-19.
This recently launched plan can be bought online, without pre-medical screenings. It is also made
available for anybody with an international travel history.

According to Religare insurance agent Anmol Pandey, fresh policy-holders will receive insurance
benefits after the stipulated 30-day activation period, in accordance with the Insurance Regulation
and Development Authority (IRDA) guidelines. Many service providers began including the
coronavirus under their Critical Illness plans after the first cases in India were confirmed, he added.
Companies such as HDFC Ergo cover the virus under pre-existing plans, said agent Assad Farooq.
However, these policies only provide insurance covers to those hospitalised and not those who are
quarantined, he further explained. The policy has two options, with premiums of Rs 459 and Rs
918, respectively. Meanwhile, SBI life insurance has extended the March renewal dues by one
month, owing to the current situation. Several other major insurance providers have rolled out cover
plans to tackle the Covid-19 outbreak.

ICICI Lombard has launched a Covid-19 Protection Cover — in group insurance mode — which
pays 100 per cent of the insured sum on the event of diagnosis. Persons between the ages of 18-75
years can claim this policy, unless diagnosed prior to the inception date or within the 14-day wait
period. Lombard’s policy also excludes cases of international travel post-December 31, 2019. The
policy can be purchased for Rs 149.

An insurance plan under Edelweiss Health covers hospitalisation due to Covid-19 and provides
cover to those quarantined at specific, government-identified facilities. In a first, the group has
sought and received permission from the IRDA to waive the activation period of 30 days. Insurance
groups have also initiated plans that allow group insurance for companies and pre-existing
organisations. Edelweiss provides a Group Total product for small businesses and start-ups, which
is customisable by employers for their employees, with premiums that begin at Rs 50. Similarly,
Religare provides a cover of Rs 5 lakh at a premium of Rs 250.

However, these policies are inapplicable to workers in the informal sector, leaving them vulnerable.
An insurance scheme for the poor called the ‘Ayushman Bharat Pradhan Mantri Jan Arogya
Yojana’ under the National Health Authority (NHA), has been instructed to tighten their protocol
and provide health packages for the financially weaker sections of society.

Currently, government hospitals across the country have been the sole centres for treating the
patients affected by the pandemic. Many private hospitals have now been enlisted to assist as the
number of cases is set to increase in the next couple of days.

According to reports, private hospitals have agreed to treat economically backward patients at
subsidised or government-mandated rates.

5. Potential implications of COVID-19 for the insurance sector

How the coronavirus outbreak may impact insurers operationally and economically

COVID-19 is impacting the insurance industry in multiple ways—from employee and business
continuity issues to client service considerations to the financial outlook. Here are some key issues
insurers face and potential action steps they could take.

INSURERS are responding to the widening COVID-19 outbreak on multiple fronts—as claims
payers, employers, and capital managers. Each has its own distinct challenges, not just for the
insurance industry, but for the economy and society at large.

However, the most immediate concern for insurers is protecting the health and safety of employees
and their distribution partners in the agent/broker community as they strive to maintain business
continuity. Like the commercial policyholders they serve, insurers are being challenged to review
and update their crisis management plans and take steps to continue operations with a minimum of
disruption to clients.

If they haven’t already done so, insurers should consider establishing cross-functional, emergency
decision-making teams to coordinate the organization’s response, set new safety protocols, and
assure quicker action as conditions continue to evolve.

1. A comprehensive communications system should also be in place to keep employees,

distributors, and clients fully informed about the status of business continuity plans and
instructions on how to remain personally safe.
 2. One of the biggest challenges could be enabling alternative work arrangements for insurance
company employees if needed to protect staff and adapt to possible office access
restrictions, all while assuring business continuity.

Emphasis on efforts to contain the spread of COVID-19 may mean enabling insurance company
staff—from actuaries to underwriters to claims managers—to work offsite, most likely from home.
Insurers should ascertain whether employees can access necessary files and conduct business from
remote locations. In addition, chief information security officers (CISOs) may need to establish new
cybersecurity protocols to permit the safe exchange of confidential information among employees
connecting from outside the office.

Many organizations are setting policies around remote access to support social distancing. As
companies move toward remote protocols, chief information officers, chief technology officers, and
CISOs should ensure that offsite workers have access to the following technology capabilities:

A laptop or desktop computer, preferably equipment issued by the company.

A virtual private network to securely and remotely connect to critical business applications.

Collaboration tools to help with audio, video, and screen-sharing.

An adequately equipped and staffed IT support team to answer employees’ questions and help them
continue to do their jobs remotely.

Insurers may have additional circumstances to consider to accommodate claims adjusters, who
often need to travel to perform their jobs—both locally and to more distant locations. That could be
problematic with the COVID-19 outbreak. What if an adjuster needs to go onsite to examine a
claim for commercial or personal property damage, and one of the policyholder’s family members
or an employee who interacts with the adjuster is infected with COVID-19?

To avoid such circumstances, insurers may have to take additional safety steps such as setting new
protocols for in-person interactions with claimants or requiring claims to be investigated from the
office or an alternative remote location where possible.
Agent/broker considerations

COVID-19 could also disrupt an insurer’s client service, starting with its distributors. Agents,
brokers, and financial advisors will likely face many of the same risk management and logistical
challenges as those being addressed by their carriers, especially since many may also have to work
from home. Meanwhile, face-to-face meetings with prospects and clients may have to be avoided
until the risk of exposure passes.

Under these circumstances, insurers that have invested in advancing their digital capabilities will
likely be better positioned in the short term to maintain a connection to their distribution partners,
who, in turn, should be able to offer faster and more comprehensive services to their clients.

Insurers could also enhance planning and training in anticipation of a potentially longer-term period
of social distancing that could shift how intermediaries stay in contact with their clients, how they
prospect for referrals, and how they serve clients who may be experiencing financial strain. With
good digital tools, this can be a period of productive planning, training, and outreach across
company, intermediary, and client stakeholder groups. In times of uncertainty and financial stress, it
seems increasingly important for the insurance sector and broader financial services industry to
maintain connections and be well-positioned to serve.

Once this outbreak has passed, each insurer’s risk management team should assess how quickly and
effectively they were able to respond. They should also determine any additional steps that may
need to be taken to adapt their organizations and make them more resilient if faced with future
pandemic events.
Impact on insurers’ financial outlook

1. Insurers are also carefully considering the potential impact of COVID-19 on their short-term
and long-term financial outlooks. Claims costs will likely be specific to the classes of business
an insurer writes and their policy wordings. However, the bigger-picture concern is how the
outbreak might affect the economic environment—specifically, prospects for growth and
profitability in insurers’ underwriting and investment portfolios.

2. The Insurance Information Institute, in its first quarter “Global macro outlook,” reported that
“COVID-19’s impact on global growth and the insurance industry is likely deeper and wider
than the current consensus and could last well into the third quarter and beyond.

3. The report added that, as a result of the effects of the virus outbreak, “global GDP growth in
2020 could slow down by as much as 1 percent, from 3.3 percent to 2.3 percent, making a 2021
recovery unlikely.

4. The Organization for Economic Cooperation and Development (OECD), in its report
“Coronavirus: The world economy at risk,” said that a longer-lasting and more intensive
outbreak could reduce global growth to just 1.5 percent in 2020.

5. Insurers across the board would likely be impacted by a sharp slowdown in economic
activity, which would undermine growth and perhaps even contract insurable exposures.

At the same time, interest rate declines will weigh heavily on the entire insurance industry, but
will most especially affect operations in the life insurance and annuity sectors. The Federal
Reserve, in its first emergency move since the recession in 2008, on March 3 cut the federal
funds rate by 50 basis points, then cut it again to near zero on March 15.

6. This will likely have a major impact on life and annuity insurers, given their rate-sensitive
products and investments. Many life and annuity insurers have already been recalibrating to
address exposure to historically low interest rates. Some have modified products, often by
lowering guaranteed rates. Additional adjustments of this sort may be required.

The situation is exacerbated by major volatility in the equity markets since the COVID-19
outbreak hit the United States. Property-casualty insurers tend to be especially vulnerable to
stock market fluctuations, as they hold more liquid assets in case of catastrophic losses. US
 property-casualty insurers had 23 percent of their assets in stocks in 2018, compared to only 2
percent for life insurers.

7. Financially, insurers will also likely need to adjust their budgets and implementation plans,
cash flow expectations, and investment portfolios in light of recent developments.

Potential tax implications should also be evaluated for the contingencies discussed above. With
recent tax law changes in both the United States and in jurisdictions around the world, previous
tax planning may need to be evaluated during the current economic unrest. Some of the tax
items to be cognizant of include, but are not limited to, US domestic and international regime
changes as well as other global tax-related developments.

As this situation evolves, insurers are expected to continue to serve as shock absorbers for the
economy and society. Financially, the industry prepares for large loss events such as COVID-19
and should be well-capitalized for any onrush of claims. Insurers are also helped, in large part, by
reinsuring large parts of their books of business, which is one of the ways the industry is able to
spread risk.
 6. IMPACT OF COVID-19 ON INSURANCE COMPANIES

The Ministry of Health and Family Welfare has announced an insurance cover of Rs. 50 lacs for a
period of 90 days to public healthcare providers including community health workers. • Insurance
industry is affected in multiple ways due to sudden declaration of pandemic by WHO.

1. What aspects should be considered while claiming insurance under existing policies on account
of the COVID-19 outbreak?

General exclusion for epidemic or pandemic outbreak:

• Policy covers insurance arrangements; part performance by company.
• Notify the insurance company.
• Stay well-versed with guidelines with respect to claim process issued by insurance
companies.

2. What are the steps taken by Insurance Regulators during the pandemic outbreak of COVID-19?
• Various circulars issued by Insurance Regulatory and Development Authority (IRDAI) with
regard to Health Insurance, Life Insurance, Employees and Health Workers, and Companies.
• Insurers to offer need-based health insurance plans.
• Strict revision of claims by Claims Review Committee.

3. What are the consequences of COVID-19 being declared as a pandemic on insurers?

• Contact your health insurer immediately Express exclusion of pandemic and outbreak under
terms of the policy.
• Insurance companies will pay admissible medical expenses even during quarantine.

4. Whether insurance claims can be denied if one travels to a country affected by COVID-19?
• Governmental regulation/circular/advisory prohibiting travelling to the said country.
• Exclusion of epidemic and pandemic outbreak of disease under the terms of the policy.
• Claim arising out of an event unrelated to Covid-19
• Terms and conditions of the policy include travel restriction.
 7. Covid-19 Impact on Insurance Sector

COVID-19 is affecting the insurance industry in multiple ways; from employee insurance and
continuity of business issues to client service
obligations and finally to sustain the financial outlook of the company.
The coronavirus (COVID-19) outbreak is leading to widespread concern and is increasing economic
hardship for all consumers, businesses and communities.

Since the private sector has now been allowed to treat COVID – 19 patients, insurers have been
getting health insurance claims. Though some elective treatment have been postponed but
ultimately it will get done and only then the real impact on the insurance sector will be known.

From claim scrutiny to claim admission to force majeure clause to regular compliances, every area
has not become a grey area in the insurance sector.

We have tried to answer certain questions being raised by the industry to bring more clarity in the
minds of the people:

Health Insurance

Q.1.Does my insurance policy cover COVID – 19?

Ans: Most insurance service providers have now started covering the medical expenses and
treatment for COVID – 19 in their policies. In light thereof, Insurance Regulatory and Development
Authority of India (IRDA) has issued guidelines IRDAI/HLT/REG/CIR/054/03/2020 dated
04.03.2020 and vide Circular no. IRDAI/INSP/CIR/MISC/077/03/2020 dated 30.03.2020 for
meeting health insurance requirements of various sections and has advised the insurance companies
to design products covering the costs of treatment for COVID – 19.
However, these are a general set of guidelines and might or might not be applicable to all insurance
policies.

Q.2. Does there exist any specific guidelines/circulars with respect to Health Insurance Contracts?
Ans:With regards to Health Insurance Contracts, IRDA vide Circular bearing No.
IRDA/Life/Cir/MISC/072/03/2020 dated 23.03.2020 had dispensed with the directions to the
insurance companies to provide for specific information, product wise pertaining to the
admissibility or otherwise of COVID – 19 claims to be provided on the website.
Q.3. Are there any notifications for cases where a person fails to renew health insurance policy or
discontinue the same due to lockdown?
Ans: The IRDA vide its Press Release dated 23.03.2020 has directed the insurance companies to
condone the delay up to 30 days in renewal of health insurance policies without deeming such
condonation as a disruption in policy. However, IRDA also laid down the guidelines for the
insurance companies to contact the insurance policy holders, well-in-advance so as not to have
discontinuance in coverage.
Whereas, the Ministry of Finance vide Notification No. 14017/18/2020-IN-II issued on 01.04.2020
has notified that if a health insurance policy is expiring and due for renewal in the period beginning
from 25.03.2020 to 14.04.2020, one may make payment of its renewal premium on or before
21.04.2020 to ensure continuity of the Health Insurance cover from the date on which the policy
falls due for renewal.
Due to issuance of two different releases by two different Authorities, this has created confusion in
the minds of the people with regard to additional time allotted for renewal of health insurance
policy.

Life Insurance

Q.4. Are there any reliefs given for the payment of Premium pertaining to Life Insurance Policy?
Ans: The IRDA vide Circular bearing No. IRDA/Life/Cir/MISC/072/03/2020 dated 23.03.2020 has
issued directions to the insurance companies for extending the Grace Period, by one month, for
payments due in the month of March 2020, in the areas where lockdown has been declared by the
State Government.

Q.5. Are there any directions for expeditious settlement of claims arising out of COVID – 19?
Ans: The Circular bearing No. IRDA/Life/Cir/MISC/072/03/2020 dated 23.03.2020 issued by
IRDA directed insurers to settle Life Insurance claims of COVID – 19 to be settled expeditiously to
suit the emergency situation in the affected areas.
Further, vide Circular bearing No. IRDAI/INSP/Cir/MISC/077/03/2020 issued on 30.03.2020 by
IRDA directed the insurance companies to process the claims arising on account of COVID – 19
promptly and efficiently.
Q.6. Is it mandatory for the Insurance companies, who have issued Life Insurance policies, to
display information on their website with regard to admissibility of claims?
Ans: IRDA vide Circular bearing No. IRDA/Life/Cir/MISC/072/03/2020 dated 23.03.2020 has
issued directions to the insurance companies for providing information on the website about
admissibility, or otherwise COVID – 19 death claims, for all the products covering the contracts
already issued to the policyholders.

Employees and Health Workers

Q.7. What are the obligations of the employers with regard to the medical expenses for COVID –
19 victims or expenses for the employees?
Ans: IRDA has issued guidelines for health insurance policies, medical expenses, etc.
implementation of which would require a consultancy on case to case basis.
However, these are a general set of guidelines and might or might not be applicable to all insurance
policies. On a general note, any health insurance policy provided to the employee by the employer
would cover the risks associated with COVID – 19.
However, it is imperative to see the specific phrasing of the terms & conditions of the insurance
policy.

Q.8. Whether any insurance is provided to the Health Workers fighting COVID – 19?
Ans: The Ministry of Health and Family Welfare in its Press Release on 26.03.2020, under the
umbrella of Pradhan Mantri Garib Kalyan Package, announced an insurance cover of Rs. 50 Lakhs
for a period of 90 days to public healthcare providers including community health workers, who
may have to be in direct contact and care of COVID – 19 patients and who may be at risk of being
impacted by this.
The said insurance cover also includes accidental loss of life on account of contracting COVID –19.
The insurance provided under this scheme would be over and above any other insurance cover
availed of by the beneficiary.

Q.9. What are the obligations of the employers with regard to the medical expenses for COVID –
19 victims or expenses for the employees?
Ans: IRDA has issued guidelines for health insurance policies, medical expenses, etc.
implementation of which would require a consultancy on case to case basis.
However, these are a general set of guidelines and might or might not be applicable to all insurance
policies. On a general note, any health insurance policy provided to the employee by the employer
would cover the risks associated with COVID – 19.
However, it is imperative to see the specific phrasing of the terms & conditions of the insurance
policy.

Q.10. Whether any insurance is provided to the Health Workers fighting COVID – 19?
Ans: The Ministry of Health and Family Welfare in its Press Release on 26.03.2020, under the
umbrella of Pradhan Mantri Garib Kalyan Package, announced an insurance cover of Rs. 50 Lakhs
for a period of 90 days to public healthcare providers including community health workers, who
may have to be in direct contact and care of COVID – 19 patients and who may be at risk of being
impacted by this.
The said insurance cover also includes accidental loss of life on account of contracting COVID –19.
The insurance provided under this scheme would be over and above any other insurance cover
availed of by the beneficiary.

Relief in Compliance

Q.11. During the period of lockdown, how is one supposed to make the payment of premium,
renewal, settlement, etc. for the month of March, 2020?
Ans: IRDA in a Press Release dated 23.03.2020 had issued directions to the insurance companies to
ensure proper service and maintain continuity of business operations inter alia through possible
alternative arrangements including telephonic and digital contact.
In lieu thereof, the insurance companies have been directed to display the information on their
website for making payment and functioning of their office.
Q.12. Whether any relaxations are provided to the insurance companies to conduct Board Meetings
in this Pandemic?
Ans: The IRDA vide Circular No. IRDA/F&A/CIR/2019-20/481 dated 23.03.2020 has relaxed the
conditions for Board Meetings of insurers thereby stipulating that the meetings due till 30.06.2020
may be held through video-conferencing or other audio-visual means in accordance with Rule 3 of
the Companies (Meetings of Boards and its Powers) Rules, 2014 as amended on 19th March, 2020.

Q.13. Whether any relief is provided to the insurance companies for submission of returns?
Ans: The IRDAI vide Press Release dated 23.03.2020 has extended the period for submission of
monthly returns for March, 2020 by the insurance companies and intermediaries by allowing them
an additional period of 15 days.
Furthermore, for submission of quarterly returns, an additional period of one month will be
permitted.
Q.14. What is the remedy available in case if the complaint of the policyholder is not redressed in
the allotted time frame?
Ans: As per the Circular bearing No. IRDAI/INSP/CIR/MISC/077/03/2020 issued by IRDA on
30.03.2020, though the normal response time for policyholder complaint redressal is 15 days,
however due to pandemic situation, an additional 21 days time is allotted to the policyholder in
respect of all complaints received on or after 15.03.2020 and upto 30.04.2020.
However, this additional response time is not applicable to complaints pertaining to COVID – 19
for which the extended timelines will continue to apply.
 CHAPTER – 2
REVIEW OF LITERATURE
 Literature Review

Sandhu, H. S., & Bala, N. (2011) demonstrated in their study seven-factor construct (consisting of
34 items) representing Proficiency; Media and presentations; Physical and ethical excellence;
Service delivery process and purpose; Security and dynamic operations; Credibility; and
Functionality. Besides, the study also investigated the relationship between each of the generated
service quality dimensions and customers overall evaluation of life insurance service quality. It
revealed that among those seven factors, three viz., Proficiency; Physical and ethical excellence;
and Functionality have significant impact on the overall service quality of Life Insurance
Corporation of India.

Joshi, M., & Takodia, T. (April 22-23, 2010) have observed that India's insurance sector is
zooming to show an unprecedented progressive growth of more than 200% in the period of 2009-
10. As Indian Stock market has also achieved stable growth in last more than six months,
investment avenues based on it are also performing well afterwards. ULIPs have also shown its
increased market-share, in the total insurance business. ULIPs are also well managed by IRDA,
even in terms of ceiling of total charges charged by Insurance companies. IRDA has established
detailed guidelines with explanation of the terms used in it. Finally we can say about ULIPs that its
performance can be identified by its NAV and its growth, which could be the important variable for
the investors for their investment decision.

Khurana, A. (2009, April) has worked on comparative study of HDFC, ICICI Pru and Bajaj
Allianz hybrid pension fund. He had used published data of performance of this funds. He has used
ANOVA, Turkey HSD and Dunnet t-test and found that there is no significant difference between
performance of pension funds balanced of all selected insurance companies. Here we want to study
preference for insurance company for taking life insurance plan in future as well. For this purpose,
primary would be used.

Kokatnur, S. S. (2009) had found that store brand approximately sell for 30% less than the national
brand. Consumer’s perceptions varies when it is bought form a shabby, smelly store compared to a
good ambience store. In similar manner in this study effect of serve of agent, name (brand) of
company etc. on perception of investor could be studied.

Rashmi, B., Nair, N. S., Sabu, K. M., & Unnikrishnan, B. (2007) found that the health insurance
companies should come out with clear cut policy details, as many of the respondents had vague
ideas about the various benefits and risks involved in a policy. If the private insurance players want
to venture in the market, they should try to imbibe trust in the people as most of the
respondents
preferred government health insurance schemes, the reason being guarantee for their capital. To
develop a viable health insurance scheme, it is important to understand people’s perceptions and
develop a package that is accessible, available, affordable and acceptable to all sections of the
society.

Das, M., C, L., Atwal, S., & Thapar, S. (2007) Life insurance policies are no longer seen solely as
a means of insuring life. Due to many new features introduced by life insurers, they are seen in new
light of serving saving and even investment purposes besides the basic purpose of insuring life.

Bhat, R. (2005) mentioned that the process of reforms initiated some years ago has some
achievements to its credit. It has enhanced competition, provided a choice to the customers,
triggered innovative ways and means to carry out insurance activities, improved the efficiency level
of the industry, increased the coverage of insurance in terms of density and penetration, obligated
the insurers to provide for the needs of social and rural sectors, and increased awareness about the
necessity of insurance, to name a few.

Frank and Boyd (1965) found that both the brands private as well as government (public) are
consumed by people with similar socio-economic background. The demographic variables have a
major role to shape the perception of the consumers over private labels. We would like to study that
whether private or government brand of life insurance companies affect perception and preference
of investors or not.
 CHAPTER – 3
RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY

 OBJECTIVES OF THE STUDY

1. To check the level of awareness of insurance companies move in the private sector

employees regarding covid 19

2. To have in depth knowledge of private sector employees faces the problem with insurance

companies during such pandemic

3. To examine the Indian Insurance market and make a comparative study of the operations

and claim settlement procedures of Public Sector and Private Sector Life Insurance

Companies.

4. To study the different mechanisms of risk calculations, underwriting procedures, premium

and bonuses offered and claim settlement procedures in public sector and private sector Life

Insurance Companies.

5. To assess the performance of Public sector vis a vis Private Sector Life Insurance
Companies.

6. To analyse the shift in customer perceptions and preference towards Private Sector Life

Insurance Companies and to investigate the causes there to.

7. To offer suggestions to customers about the long term financial benefits and security offered

by insurance and be a catalyst to change the perceptions of customers so as to make them

aware of the need for insurance.

8. To examine the role of IRDA as the sole regulatory body for all insurance companies in

India and study the changes in the regulation in Insurance sector since 2000.

9. To evaluate the various Customer Relationship Management programmes and Marketing

strategies adopted by Public Sector and Private Sector Life Insurance Companies.

10. To have an in depth understanding of the problems faced by public sector and private sector

Life Insurance Companies and suggest suitable remedies.

11. To study current scenario of Life Insurance Sector.

12. To study the awareness about life insurance companies’ operative in market.

13. To know the preferences of retail investors among selected life insurance companies.
14. To achieve above said objectives following Research Methodology has been carried out.

This methodology is decided after study of literature review discussed earlier.

 Type of Research Design:

For this study Descriptive Research design is used. Various facts are described on the basis
of primary and secondary data analysis.

 Sources of Data:

In primary data opinion of investors who have at least invested some amount life insurance
is collected. In secondary data up to date data published by regulatory authority as well as
data referred from various papers published in journals, papers presented and published in
conferences, and newspaper articles are employed.

 Population:

Population for the primary data in this study is all the investors who have invested their
money in different kinds of life insurance plans and situated at Surat city.

 Sampling method and Sample:

Sample size for this study is 150. As it is not possible to have sample frame, out of non-
probabilistic sampling methods, convenient sampling method has been applied. Thus
primary data have been collected on the basis of accessibility of respondents.
Instruments

Structured questionnaire is used as an instrument for the collection of data. This

questionnaire is prepared carefully to check awareness of retail investors about and life
insurance companies and preferences for them. In questionnaire all questions were of close
ended type.

 Scope of Study
 This study is conducted within Surat city only and outcome of this study may only
applicable to investors situated at Surat city. Hence the scope of the study could be limited
to Surat city only. Other researcher may conduct same kind of survey for other city or in any
part of the country to measure the same.

 Data Collection

Secondary data is collected from reports of IDRA (Insurance Development and Regulatory
Authority), report of Economic Survey and other journals article referred for literature
review. Primary data collection is done through personal interviewing investors – 104
respondents, and with use of email to investors – 46 respondents, who had invested at least
in one of the life insurance plans. The website www.surveymonkey.com and google forms
are used to collect online data, so computer savvy investors could also respond through
online survey.
 CHAPTER – 4
DATA ANALYSIS
AND
INTERPRETATION
 DATA INTERPRETATION AND ANALYSIS

1. Gender

Interpretation;
Out of 100 respondents,51 respondents are female and 49 respondents are male.

2. AGE

Grand
Female Male
Total
20-25 47 34 81
25-30 1 13 14
30-40 2 2
Below 20 3 3
Grand Total 51 49 100

Interpretation;
in the above chart,81 respondents belong to the age group of 20-25 years,14 respondents
belong to the age group of 25-30 years and 2 respondents belong to the age group of 30-40
years, 3 respondents below to the age of 20 years.
3. Occupation

Count of Occupation
Business 8
Government sector 37
Private sector 47
Retired 1
Student 7
Grand Total 100

Occupation

Student Retired Private sector

Government sector
Business

0 10 20 30 40 50

Interpretation;
in the above chart,8 respondents from the Business class, 37 respondents from the
government sector, 47 respondents from the Private sector, 1 respondent from the retired
class, 7 respondents are student.

4. Do you have insurance?

Count of Do you have

insurance?
No 40
Yes 60
Grand Total 100

Interpretation;
out of 100 respondents, 40% of the respondents do not have any insurance ,60% of the
respondents have the insurance
 5. If no, will you buy insurance policy during covid-19 pandemic?

Count of If no, will you buy insurance

policy during covid-19 pandemic?
No 52
Yes 42
Grand Total 94

Interpretation;

52 out of 100 respondents don’t want to buy any insurance policy during covid-19 pandemic
and 42 are agreed to buy insurance policy.
\
6. If yes, Which insurance policy you will prefer to buy?

Row Labels Count of If yes, Which insurance policy you will prefer to
buy?
Health insurance 43
Life insurance 35
Nothing 18
Grand Total 96

Interpretation;
 out of 100 respondents ,43 respondents have the health insurance, 35 respondents have the
life insurance and 18 respondents don’t have any insurance

7. What are the sources of your information about insurance products?

8. How many insurance policies do you currently have?

Count of how many insurance policies do you

currently have?
1 46
2 16
3 7
4 5
None 26
Grand
100
Total

Interpretation;

out of 100 respondents, 46 respondents have only 1 insurance policy ,16 respondents have 2
insurance policies, 7 respondents have 3 insurance policies, 5 respondents have 4 insurance
policies and 26 respondents don’t have any insurance policy.
9. Do your insurance policy covers the effect of covid-19 disease?

Count of Do your insurance policy covers the effect

of covid-19 disease?
No 56
Yes 44
Grand Total 100

Interpretation;

out of 100 respondents ,56 respondents say that their insurance policy don’t covers the
effect of covid-19 disease and 44 respondents says that their insurance policy covers the
effect of covid -19 disease.

10. How regularly do you pay your insurance premium amount?

Count of How regularly do you pay

your insurance premium amount?
Half yearly 9
Monthly 25
Monthly Alternative 12
Quarterly 11
Yearly 34
Grand Total 91
 Interpretation;

out of 100 respondents, 9 respondents are paying their premium half yearly, 25 respondents
are paying their premium monthly, 12 respondents are paying their premium monthly
alternative, 11 respondents are paying their premium quarterly and 34 respondents are
paying their premium Yearly. 9 respondents are those who have no insurance policy.

11. Do you think falling of interest rates in the financial markets will impact life insurers?

Count of Do you think falling of interest rates

in the financial markets will impact life
insurers?
No 25
Yes 75
Grand Total 100

Interpretation;

out of 100 respondents,25 respondents think that there is no falling of interest rates in the
financial markets due to the impact of life insurers and 75 respondents think that there is
falling of interest rates in the financial markets impact the life insurers.
12. Do Non-life insurance companies have an option to turn this crisis into an opportunity?

Count of Do Non-life insurance companies have an

Row Labels
option to turn this crisis into an opportunity?
No 33
Yes 67
Grand Total 100

Interpretation;

out of 100 respondents, 33 respondents think that non-life insurance companies have an
option to turn this crisis into an opportunity and 67 respondents don’t think that non -life
insurance companies have an options to turn this crisis into an opportunity.
13. Which insurance companies have come up with the best and exclusive insurance policies
for covid-19?

Row Labels Count of Which insurance companies have come up with

the best and exclusive insurance policies for covid-19?
Allied Insurance 9
Bajaj Allianz general 15
insurance
Edelweiss General Insurance 5
ICICI Lombard 36
Star Health Insurance 35
Grand Total 100

Interpretation;

out of 100 respondents , 9 respondents thinks that Allied insurance policy come up with
the best policies for covid-19, 15 respondents thinks that Bajaj Allianz insurance policy
come up with the best policies for covid-19, 5 respondents thinks that Edelweiss general
insurance policy come up with the best policies for covid-19, 36 respondents thinks that
ICICI Lombard insurance policy come up with the best policies for covid-19 and 35
 respondents thinks that Star Health insurance policy come up with the best policies for
covid-19.

14. Which digital payment service provider has best launched a coronavirus hospitalization
insurance policy?

Count of Which digital payment service provider has

Row Labels best launched a coronavirus hospitalization
insurance policy?
Airtel payment bank 35
PhonePe 65
Grand Total 100

Interpretation;

out of 100 respondents , 35 respondents says that Airtel payment bank has best digital
payment service provider who launched a corona virus hospitalization insurance policy and
65 respondents says that Phonepe payment has best digital payment service provider who
launched a corona virus hospitalization insurance policy.
15. What is your purpose of buying the insurance policy?

Row Labels Count of What is your purpose of buying

the insurance policy?
Offers multiple benefits like 41
investment+insurance
Protection of wealth 28
Returns 14
Saving 11
Tax saving 6
Grand Total 100

Interpretation;

out of 100 respondents, 27 respondents invest in insurance policy to earn interest in future,
2 respondents invest in policy to get tax benefits, and 71 respondents invest in policy to
secure their family.
16. How satisfied are you with the role played by the agents/employees of your
insurance company

Interpretation;

Out of 100 respondents, 28 respondents are highly satisfied with their insurance agents,
30 respondents are satisfied, 34 respondents are neutral, 7 respondents are least satisfied
with their insurance agents and 1 respondents is dissatisfied with his insurance agents.

17. Why you invest in insurance policies?

Row Labels Count of Why you invest in

insurance policies?
To earn interest in future 27
To get tax benefits 2
To secure your family 71
 Grand Total 100

Interpretation;
out of 100 respondents, 27 respondents invest in insurance policy to earn interest in future, 2
respondents invest in policy to get tax benefits, and 71 respondents invest in policy to
secure their family.
18. Which factor influence you to determine the nature and type of insurance products
you prefer?

Count of Which factor influence you to determine the

Row Labels
nature and type of insurance products you prefer?
Changing profits 13
Government policy 28
Income distributors 6
Level of awareness 26
Preparation of risk 27
Grand Total 100

Interpretation;

out of 100 respondents 13 respondents influence by the changing profit of insurance

product, 28 respondents influence by the Government policy of insurance product, 6
respondents influence by the income distributors of insurance product, 26 respondents
 influence by the level of awareness of insurance product, 27 respondents influence by the
preparation of risk of insurance product.

19. How covid-19 is affecting the insurance industry according to you?

Count of How covid-19 is affecting the

Row Labels insurance industry according to you?
Decreased premium 7
Delayed payments 24
Increasing life insurance
32
claims
Investment income 10
Lower returns 27
Grand Total 100

Interpretation;

out of 100 respondents ,7 respondents thinks that insurance industry affected by the
decreased premium in covid-19 pandemic, 24 respondents thinks that insurance industry
affected by the delayed payments in covid-19 pandemic, 32 respondents thinks that
insurance industry affected by the increasing life insurance claims in covid-19 pandemic,
10 respondents thinks that insurance industry affected by the investment income in covid-19
pandemic and 27 respondents thinks that insurance industry affected by the lower returns in
covid-19 pandemic.
CHAPTER – 5
CONCLUSION
 CONCLUSION
The Coronavirus pandemic has impacted almost all industries across the world, including the
insurance industry. This has forced insurance companies to take multiple steps to stay relevant in
these challenging times

Findings-

 Insurance companies should analyse the available data in conjunction with healthcare
companies and medico-legal experts, and try to understand the estimated insured loss on all
front due to COVID-19.

 Insurance companies can reach out to their existing customers proactively through
continuous digital campaigns and make them aware of the COVID-19 crisis to stop it from
spreading further. Customers usually do not use mobile applications designed by insurance
companies frequently as the relationship is transactional. Companies can design campaigns
on COVID- 19 and provide their customers with relevant information to maintain
relationships and reach.

 The regulator has put in place several conditions regarding the promptness in settling claims
related to COVID-19. Insurers must adhere to those regulations and also ensure that the
entire chain – from hospitals and caregivers to third-party administrators (TPAs) and call
centres – act fairly and quickly on the claims related to COVID-19.

 Life insurers also have an opportunity to come up with innovative riders/add-ons based on
single conditions on the base policies taken by the customers. Customers may find such
riders useful at this time and contemplate purchasing them. Insurers can approach the
regulator and ask for quick approvals of relevant product additions using the regulatory
sandbox concept.

 Companies are exploring new ways of continuing their operations amidst the COVID-19
crisis. The large number of insurance company employees working remotely will open up
avenues for exploring how companies work in the new normal, redefine their real estate
strategies and decide how the teams work in the future. This can quicken all transactions
and potentially reduce costs.
 General and health insurers have for long wanted a stronger connect and control over the
provider network – garages for automobile insurance and hospitals for health insurance.
  The current situation is ideal for insurers to move to integrated service offerings, with
central accounting and scheduling spare parts of automobiles through a blockchain network
between garages, manufacturers and insurers. Spare parts unutilised at a certain location can
be redistributed and customers will get faster service. This will derive greater benefit from
the digitisation efforts and be beneficial for insurers in times to come.

 Similarly, for all health insurance requirements, a direct integration of hospital billing and
diagnostic systems with insurers and TPAs is the way forward. This is the ideal time for
such a shift when the receptivity of the healthcare ecosystem will be at its highest as
contactless transactions become the norm.

Recommendations-

 To ensure policies stay in force, regulators can devise automatic renewal with a
grace duration period for premium payment.

 Accelerated payments of premium for government policies to ensure a steady cash flow
for the companies

 For the capital stress, increasing the FDI limit can be explored

 Post lockdown the situation can be challenging and would require economical products for
which an accelerated approval process will be beneficial.
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Business and Social Science (Centre for Promoting Ideas, USA) Vol. 2, no. No. 18
(October 2011): 219-231.

 Singh, Silender, and Satpal. "Customer Satisfaction in Life Insurance." Southern Economist
48, no.13 (2009): 21-24.
ANNEXURE
 QUESTIONNAIRE

1) Name:

2) Gender
Female () Male ()

3) Age
Below 20 () 20-25 ()
25-30 () 30-40 ()
40 and above ()

4) Occupation
Student () Business ()
Private sector () Government sector ()
Retired ()

5) Do you have insurance?

Yes () No ()

6) If no, will you buy insurance policy during covid 19 pandemic?

Yes () No ()

7) If yes, Which Insurance policy you will prefer to buy?

Health insurance () Life insurance ()
Nothing ()

8) What are the sources of your information about insurance products?

Social media () Insurance agents ()
Friends & family () Newspaper ()
TV () Employees of insurance companies ()

9) How many insurance policies do you currently have?

1 () 2 ()
3 () 4 ()
5 or more than ()

10) Does your insurance policy covers the effect of covid 19 disease?
Yes () No ()
May be ()

11) How regularly do you pay your insurance premium amount?

Monthly () Monthly Alternative ()
Quarterly () Half yearly ()
Yearly ()

47
12) Do you think Falling of interest rates in the financial markets will impact life insurers?
Yes( ) No ()

13) Do Non-life insurance companies have an option to turn this crisis into an opportunity?
Yes( ) No ()

14) Which insurance companies have come up with the best and exclusive insurance policies for
covid19?
Star Health Insurance 9 () Edelweiss General Insurance ()
Allied Insurance () ICICI Lombard ()
Bajaj Allianz general insurance ( )

15) Which digital payment service provider has best launched a coronavirus hospitalization insurance
policy
PhonePe () Airtel payments bank ()

16) . What is your purpose of buying the insurance policy?

Returns () Saving ()
Protection of Wealth Tax () Tax Saving ()
Offers multiple benefits like investment +insurance ( )

17). How satisfied are you with the role played by the agents/employees of your insurance company.
Highly Satisfied () Satisfied ()
Neutral () Dissatisfied ()
Highly Dissatisfied ()

18) Why you invest in insurance policies

To earn interest in future () To secure your family ()
To get Tax benefits ()

19) Which factor influence you to determine the nature and type of insurance products you prefer?
Government policy ( ) Changing profits ()
Income distributors ( ) Level of awareness ()
Preparation of risk ( )

20) How covid- 19 is affecting the insurance industry according to you?

Delayed payments () Lower returns ()
Investment income () Increasing life insurance claims ()
Decreased premium ()