Wary of losing your job? Take insurance cover

Amid uncertainty and insecurity due to the deepening economic crisis, the number of people seeking insurance cover for possible loss of job is showing a sharp increase. Insurers say that although such a cover has been in existence for some time now, the number of people queuing up for them has been on the rise during recent months.

Sanjay Datta, head of health insurance of ICICI Lombard, said, “After the slowdown, people have become more aware and conscious about the product. We have seen an increase on the number of enquiries for this product.” Offered as add-on cover of its product ‘Secure Mind’ from ICICI Lombard, this cover is only available for salaried employees. In case of a job loss, the insurer will pay three equated monthly instalments (EMIs) of the loan taken by the policyholder in the event of job loss.

There are three sections of the Secure Mind product: critical illness, personal accident, and loss of job. The job loss may be as a result of closure of a division or department due to financial limitations or by the action of any public authority resulting in the closure of the employer’s company. The job loss also

covers the EMIs in the case of termination from employment due to illness. However, the policy does not cover retrenchment due to underperformance, voluntary resignation or early retirement.

In case, there is no job loss during the policy duration, the insured will not get any payouts from the insurance company.

Insurance brokers also said that although the product has been available from ICICI Lombard for some years now, there has been a surge in the number of people enquiring about availability and details of the product. A Delhi-based insurance broker said, “A lot people have been enquiring about availability of a job loss cover. Earlier there were no takers for such policies.” ICICI Lombard is also looking at the possibility of increasing the three-month EMI clause due to the economic slowdown in the country. The premium for the job loss cover depends on the loan amount taken, duration of the policy, loan tenure and age of the insured. There are no standalone job loss covers available in the country yet with awareness about such products very low, said a Delhi-based insurance broker. “Such covers are becoming popular now because people fear losing jobs. To get some financial security, many people are showing interest in such products, but the market still is very small,” he added.

Source:mydigitalfc