( 07 July 2020 )
Ø ..a first of its kind standard Corona insurance product, Corona Kavach, will be available in the next couple of days.
Ø ..all general insurers and standalone health insurance players have to offer this indemnity product compulsorily by July 10.
Ø Atul Sahai, CMD, New India Assurance and Chairman, GIC, said the general rates are high and the new rates would be about one-fourth of that.
Ø “ Now, the insurer will know how he has to pay to the hospital while a policyholder will have clarity on how much he will get from the insurer,’’ Nerurkar said.
Insurance business is based on the same mathematics ( Theory of Probability ) as the business of a Gambling Casino
In a Gambling Casino , when 10 persons lose a lot of money, one person may hit a jackpot at the roulette table or a slot machine ( one-armed bandit ) . But, over any long enough period, these machines are “designed “ to operate “ in favor “ of the Casino .
Chances ( probabilities ) of “ Winning “ are much smaller than the chances of “Losing “ !
It is very much the same in Insurance business
When ten persons “ pay “ insurance premium and never fall sick , one sick insurer files a “ claim “
So , overall , the Insurance Company makes more money ( through premium payments ), than what it gives out to settle “ Claims “
But there is one BIG DIFFERENCE between these two businesses
When a stranger walks into a Casino and starts playing, Casino-Owner has no idea / no background “ win-lose history “ of that person
Hence, the machines are so designed that, for that stranger, the probability of winning, is VERY VERY small . Odds are stacked against him ! Odds are in favor of the Casino
But , as far as issue of an Insurance Policy to a citizen is concerned , it is an altogether different ball-game
Insurance Company goes all out to collect as much data as possible ( about a person applying for an insurance cover ), in order to statistically calculate those “Odds / Chances / Probabilities “, of that person falling sick and for the company to be required to settle a claim
It does not even issue an insurance cover ( ie; issue a Policy ) if you are above a certain age or have past / current history of certain illnesses
It , even makes you undergo – and pass - a stringent Medical Examination, before issuing a policy
Now here is the dilemma
Insurance Companies want to make as much profit as possible
By collecting far more insurance premium than the amount of “ payout claims “
Hence , it wants as its customers, those citizen who have VERY LOW PROBABILITY of getting infected by Covid
As against this, the NDA government which is wedded to the concept of SOCIAL JUSTICE – especially for the poor / vulnerable / disadvantaged sections of our society, wants the Insurance Companies to provide CORONA KAVACH , to these sections of people who have a VERY HIGH PROBABILITY of getting infected by Covid
It is simple . These poor people without jobs and regular income, have NO MONEY for hospital expenses, should they get infected.
They should have the HIGHEST PRIORITY among the applicants for CORONA KAVACH
In my yesterday’s blog ( sent as email to Cabinet Ministers ) , I had suggested compilation of following comprehensive DATA ( for those infected as well as those not infected ) , to establish priorities for administering COVAXIN vaccine.
[ A ] PERSONAL DATA
Ø Name / Birthdate ( for Age ) / Gendre / Contact Details / Aadhar number
[ B ] LOCATION DATA
Ø Permanent Address / Current Address ( State – Jilla – City – locality ) / Red Zone /
[ C ] FAMILY DATA
Ø Details of Parents / Siblings
[ D ] HEALTH HISTORY
Ø Details of recent illnesses - morbidity / Medicines given ( including for Covid
treatment ) / Hospitals where treated / Names & License Number of Doctor who
[ E ] ETHNIC DATA
Ø Race / Religion / Language ( Mother tongue )
[ F ] EDUCATIONAL DATA
Ø Graduate – Under Graduate – Illiterate etc
[ G ] EMPLOYMENT DATA
Ø Employed – Unemployed – Self employed
[ H ] INCOME DATA
Ø Monthly Income ( to determine whether RICH – MIDDLE CLASS – POOR )
Dear Dr HarshVardhanji,
I urge you for :
Ø Central Govt paying the CORONA KAVACH insurance premium for those 80 crore ( 800 million ) poor persons who you have just covered for giving FREE ration for July – November . Make CORONA KAVACH free for them
Here is an alternative :
No need for Govt to pay the insurance premium.
At the end of the year, whatever total amount that any Insurance Company pays ( directly ) to the hospitals for Covid related treatment of those 80 crore poor ( insured ), to be set-off against the CSR obligation of that Insurance Company .
If that amount exceeds CSR obligation, unadjusted portion can be carried forward to following year
Ø Central Government to mandate the Insurance Companies to include above-mentioned DATA FIELDS in their Online Application Forms. These data to get instantly / automatically transmitted to the Central Server of the Health Ministry
Ø If for any reason it becomes necessary for the Insurance Companies to fill in the application in a paper form, then the same should get transcribed digitally ( through “ VaccineVend “ app , mentioned in my yesterday’s blog ? )and transmitted to Health Ministry , in order to receive Insurance Premium, directly into their bank accounts
Dear Dr HarshVardhanji,
At any other time ( like 12 months back when political debate was raging re CAA – NRC – NPR etc ), such a mandatory compilation of Exhaustive Data about our citizen, would have invited opposition from all and sundry
But, under present situation, no one will raise a finger against delivery of SOCIAL JUSTICE to poor people
Related reading :
Hemen Parekh / hcp@RecruitGuru.com / 08 July 2020