Finance

What is the state of insurance in the Coronavirus pandemic era?

Insurance is a type of arrangement that is expected to come in handy whenever there is an emergency that requires individual spending money on things they once had but suddenly lost due to conditions covered by the insurance. It could be a person losing their health, car, or property among others.

Currently, the world is faced with a pandemic that has made many people lose their life, health, and businesses, you might be wondering if those who were insured got any help and if you could still get an insurance policy today that will protect you from the pandemic.

Did previous insurance policy cover Coronavirus risks?

Coronavirus is a health condition and hence falls under health-related conditions. The implication is that if you had active health insurance or life insurance policy before the Coronavirus broke out and you become a victim of the virus, your insurance policy should cover you. In as much as the government in most countries including the United Kingdom are striving to curb the Coronavirus, hence, being responsible for all or most of the payments for treatment of patients, providing palliatives, and supporting businesses, should you be required to make any payment for treatment, the insurance company you have a health policy with should pay. You can get to know about insurance companies that pay claims during the pandemic by reading reviews of those who were paid or denied on uk.collected.reviews.

about insurance companies

However, for businesses, it might be a bit difficult getting a claim from an insurance company. This is considering that most business insurance companies cover physical damage, majorly disasters like hurricane and fire. Most insurance policies do not cover interruptions from communicable diseases or viruses. While civil authority covers could mean that you can make a claim when your government orders for closure affect your business, the causes for the civil authority are often stated to mean physical damages. Hence, However, you could still talk to your insurance company to know if you can make a claim or not for your business based on interruptions from the pandemic or not.

Is the process of making claims delayed by the pandemic?

If you have a running insurance policy and you need to make a claim, chances are that you might have to wait a bit longer for your claim to be processed. This is considering that most of the insurance companies staff are also working from home or limiting the staffs that come to the office to encourage social distances and reduce the chances of getting infected. Hence, it will take a bit longer for your claim to be processed.

Will the pandemic increase the cost of insurance premium?

If you want to get new insurance during the pandemic, it is likely to take a longer time to process and also cost more too. The pandemic has resulted in insurance companies, especially those that offer life insurance policies, paying more claims for a family where an individual advanced in age (who are part of the most vulnerable to the pandemic) got the insurance coverage that have lost their lives to the pandemic. Hence, apart from measures to protect their employees resulting in lesser efficiency since some insurance policies require a physical examination, they might want to take more time to investigate your health background. The higher risk due to the pandemic would also mean paying more. This is more so for older individuals who want to get a new life insurance policy.