Policybazaar announces insurance products that cover job losses

 The plans offer coverage under two different conditions, the first being one where job/income is lost due to termination/lay-off or retrenchment, and the second condition is where job/income is lost due to disability or death

There are different plans available for both salaried and self-employed individuals, and benefits offered under both, the categories vary from one plan to another, according to Policybazaar

Policybazaar on Tuesday launched a new vertical, where an individual can buy job or income losses products. According to Policybazaar, the new vertical will help users to learn about job loss products offered by India's leading insurers like SBI General, Shriram General, Universal Sompo, and Aditya Birla Insurance. The insurance plans not only cover salaried class but even self-employed people.

"A major highlight of some of the insurance plans is that they not only cover loss of income due to job-loss but even cover consumers if they are self-employed," Policybazaar informed.

The plans offer coverage under two different conditions, the first being one where job/income is lost due to termination/lay-off or retrenchment. In such a scenario, the plan helps by paying off loans for up to three months. The second condition is where job/income is lost due to disability or death. In such cases, the insured can get weekly salary benefits for up to two years.

"The growing middle class in the country needs options to safeguard themselves from sudden financial shocks as they tend to have liabilities of paying monthly instalments to service loans. A loss of job/income insurance is the right policy to own to protect from such eventualities," said Sarbvir Singh, CEO, Policybazaar.com.

This year India's workforce was severely hit by the coronavirus pandemic. As many as 21 million salaried class lost their jobs between April and August, according to a report by the Centre for Monitoring Indian Economy (CMIE). Additionally, the pandemic and subsequent lockdowns also had a major impact on the economic climate of India. As per the National Statistical Office (NSO), India's GDP in the first quarter of FY21 contracted by 23.9 per cent.

In the July-September quarter, the economy rebounded strongly as the unlock process and various relief measures announced by the government helped address issues, but the pressure to generate employment opportunities continued among the private sectors. To help people leading with job or income losses Policybazaar has launched this new vertical.

Here are some of the job or income losses plans:

There are different plans available for both salaried and self-employed individuals, and benefits offered under both, the categories vary from one plan to another.

In case of job loss due to termination/layoffs or retrenchment, the insurer pays the insured's loan instalments for three months (the instalment amount is subject to the customer's existing EMI).

Coverage for loss of income/job due to partial or permanent disability includes weekly salary benefits ranging as high as Rs 1 lakh per week (subject to customer's net salary) for a maximum of 100 weeks. Few plans even offer coverage for loss of job/income due to critical illness, partial permanent disability, or partial temporary disability. Customers can even enjoy tax rebates under Section 80 (D) of the Income Tax Act on premiums paid against the policy.