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Home / Insurance / News /  Policybazaar launches job loss insurance vertical

The on-going COVID-19 pandemic and the subsequent lockdown that followed had a significant impact on the economic climate of India. As per the National Statistical Office (NSO), India’s GDP in the first quarter of 2020-21 contracted by 23.9% and while the economy shows positive signs of recovery in recent months, there is continued pressure on the private sector to generate employment opportunities. To help people deal with job or income losses, India’s leading online insurance marketplace has launched a new vertical, where visitors can buy income loss insurance products.

"Through this new vertical users can learn more about the product offered by some of India’s leading insurers SBI General, Shriram General, Universal Sompo, and Aditya Birla Insurance. With this step, Policybazaar aims to provide income replacement benefits policies to customers for a defined time period," says the company.

Currently, job/income loss insurance covers are not available or popularly sold in the market. With this new business line being launched, plans that have the coverage for job/income loss can be compared and purchased online. 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.

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 being where job/income is lost due to disability or death. In a scenario where the job/income is lost due to termination/layoffs or retrenchment, the plan helps by paying off loans for up to 3 months. In case, job/income is lost due to an unfortunate accident that results in death, partial or permanent disability, or disablement, the insured can get weekly salary benefits for up to 2 years.

Job/Income loss is the time when most people end up breaking their savings and emergency funds. A loss of job/income insurance is an excellent option to tide off financial exigencies while maintaining long-term financial stability.

“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 installments to service loans. A loss of job/income insurance is the right policy to own to protect from such eventualities." says Sarbvir Singh, CEO, Policybazaar.com.

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 installments for 3-months (the installment amount is subject to the customer's existing EMI). Coverage for loss of income/job due to partial or permanent disability includes weekly salary benefit ranging as high as 1 akh 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 rebate under Section 80 (D) of the Income Tax Act on premiums paid against the policy.

As investments and savings are your safest bet when it comes to protecting your financial future, a job/income loss insurance is the best way to stay financially protected in the current circumstances against the burden of a job/income loss.

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