The basic role of insurers has always been to protect customers against financial losses or adverse events such as the ongoing novel coronavirus (2019-nCoV) outbreak. However, it is during such difficult times that insurers can better demonstrate their commitment towards serving their policyholders and the wider community by announcing special measures and providing support for affected policyholders.
Commenting on insurance coverage of the infection, Asia Care Group managing partner, healthcare, Asia-Pacific Thalia Georgiou said, “It is important to remember that the coronavirus is a type of flu virus. Therefore, policies which normally cover flu, will also cover this particular strain. We expect most insurers to reassure existing policyholders by making them aware of their benefits.”
The typical symptoms of the infection – fever, runny nose, sore throat, cough and shortness of breath – are similar to that of regular pneumonia and require supportive medical treatment to be provided to the patient based on his/her clinical condition.
This means hospitalisation and medical treatment costs vary from person to person and not everyone will be fully covered by their insurance policies.
“We have seen some insurers go further and offer free extended coverage to existing policyholders who have entry-level plans that have low overall benefits limits. In these cases, policyholders who may have faced shortfalls if they were to have a period of extended hospitalisation, will have better coverage,” said Ms Georgiou.
Providing assurance to policyholders
Life and health insurers across Asia including AIA, Sun Life, Manulife and HSBC Life have done so by issuing statements to confirm coverage of the virus in their medical plans. They are providing special coverage benefits, claims measures as well as financial assistance in response to a growing number of coronavirus cases across various countries in the region.
“We have introduced a range of special measures and coverage benefits for our customers based on to the needs of each market. Examples include launching simpler claims processes, waiving of medical deductible, removal of certain exclusions and restrictions, and granting an extended grace period for premium payment – all to ensure the required medical care to deal with the virus,” said Manulife Asia president and CEO Anil Wadhwani.
In Malaysia, even though a majority of the medical policies/certificates carry an exclusion on communicable diseases requiring quarantine by law, life insurers and takaful operators are responding to the coronavirus outbreak by waiving the exclusion on quarantine by law and providing hospitalisation coverage/treatment to their infected policyholders.
Meanwhile, the Hong Kong Federation of Insurers (HKFI) said in a statement that some insurers in the territory have announced that hospitalisation/treatments prescribed for the novel coronavirus will be covered.
If the insured person is diagnosed as suffering from the novel coronavirus or is ordered mandatory quarantine, the insurer will provide additional hospital cash protection. As for customers taking out a new policy within a specified period of time, the waiting period for novel coronavirus will be waived according to the statement.
“We have enhanced the range of benefits of the life insurance policies we underwrite to provide broader protection with no limitations on age or premium amount. We know in times of uncertainty, the last thing people want to worry about are the terms and conditions of an old insurance policy,” said HSBC Life CEO Edward Moncreiffe.
Examples of other special measures from insurers include:
- Coverage for all hospitalisation and corresponding treatment costs related to the novel coronavirus/ lump sum payment upon diagnosis – Bupa Hong Kong, HSBC Life Hong Kong, AIA Hong Kong, Tokio Marine Life Insurance Singapore
- Hospital cash provided for each diagnosed hospitalisation case– Manulife Hong Kong, Bupa Hong Kong, HSBC Life Hong Kong
- Additional death benefit upon death of coronavirus-infected policyholder: HSBC Life Hong Kong, AIA Hong Kong
- Related claims processed within one working day – Manulife Hong Kong, Sun Life Hong Kong
- Free insurance coverage to all frontline medical staff in Wuhan and assistance with medical aid and supplies – China Taiping Insurance, China Life Insurance
- Premium-free protection for each of the 8m frontline medical and public health professionals across China, customer support hotline and online platform as well as mobile diagnostic centres providing ancillary CT scan reading services – Ping An Insurance
- Emergency response fund to support those working on the front line in the areas most hit by the epidemic in China’s Hubei Province. The aid will consist of medical supplies, donations and insurance protection – Allianz (China) Insurance Holding and Allianz SE