Dear Viewers,
Recession or no recession; the fear of losing a job is prevalent across different classes of salaried individuals. In such a scenario, an insurance policy that would cover the policyholder in case of a job loss may well be the next innovative and ground-breaking idea.
The thought of losing a job itself is a discomforting factor, knowing that the unemployment rate in 2010 hovered around 10% in India. Unlike in western countries, an average salaried individual in India would have a higher number of dependents. If the breadwinner of the family loses his or her job, then the entire family falls into a financial crisis. An insurance policy that would compensate an individual in case of a job loss will be a boon not only to him but also to the entire family. Such a policy, if launched, should most probably fly off the shelf.
Insurance companies are closely watching the latest trends and demand for such a standalone insurance policy. According to a senior official of a private general insurance company, they have been considering a job loss cover for quite some time now.
T A Ramalingam, Head - Underwriting, Bajaj Allianz General Insurance said that over the last 6 months, queries regarding comprehensive job loss cover has increased. “Depending on the customer requirements and the product feasibility, we may consider offering this cover as part of a package policy for other customer segments that have financial relationships with financial institutions. It can cover a certain percentage of the gross monthly salary of the insured person, in case of a covered contingency,” he added.
If a job-loss cover is introduced in the Indian markets, it would come with a lot of conditions and exclusions attached. Insurance companies, underwriting teams, appointed actuaries will have to study the markets, changing trends, risks involved and various other factors in detail, before they can launch such a product.
....EDITOR
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