iii survey “impact of
TRANSCRIPT
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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III Research/Covid-19/2 of 2020
Treatment
Health
LifeLife & Healthcare Treatment Cost
III Survey “Impact of
Covid-19 on Health and
Life Insurance”
September 2020
Thought Leadership Initiative of Insurance Institute of India
“Insurance is an important source of strength during the health
crisis and also in case of sudden death of the bread earner”
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
2
Table
of
Co
nte
nts
About Insurance Institute of India
Introduction and Background of the
Survey
Question-wise Findings
Findings of the Survey
Conclusions and Recommendations
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Insurance Institute of India (III) formed in 1955 as
a Federation of Insurance Institutes, is recognized by
the Indian Insurance Industry, SAARC countries
and many other developing insurance markets, as a
pioneer in insurance education, responding to the
academic needs of the industry as well as addressing
the causes of building and developing
professionalism. III certifications are internationally
recognized.
College of Insurance (COI) the training arm of III,
founded in 1966, provides training in all technical
and functional domains of Insurance. A large
number of private and public sector insurers,
brokers, surveyors, purchasers of insurance and
others benefit from COI’s classroom sessions,
workshops, seminars, industry research and
knowledge sharing activities. COI has a fully
functional campus in Kolkata, catering to the
academic needs of the Eastern and North Eastern
Regions of India and those of the neighboring
countries.
In view of the current restrictions on travel and need
to follow social distancing, COI has begun virtual
training from June 2020. (COI Virtual Training
calendar is available on - https://www.coi.org.in/
and on https://www.insuranceinstituteofindia.com
III's Research Centre is recognized by the
University of Mumbai for Ph. D. Research. It
conducts research studies for the Institute and for
reputed national and international entities. III fosters
research by supporting budding researchers through
research based essay competitions and by extending
financial support to researchers. Under its
Knowledge Management Initiatives, III reaches out
to around 1,00,000 practitioners of insurance and
keep them abreast of the latest in the industry every
week. Institute news is published on a monthly basis,
while the III Journal is quarterly.
Research Studies: Indicative
III Survey - Post Covid-19
Times - Strategic Concerns
for the Insurance Industry (June 2020)
Challenges in Insuring
Flood-prone areas of Mumbai – for General
Insurance Corporation of
India (2019)
Property Insurance in New and Existing Housing – for
National Housing Bank
(2019)
Insurance Requirements of
the Indian Logistics &
Warehousing Industry and
its Customers (In-Country Operations) – for Transport
Corporation of India (2017)
Country Landscape Study on Mutual and Cooperative
Insurers in India -
Cooperative and Mutual
Insurance Federation (2017).
Design and Product
Performance of the Industrial
All Risks Policy – for General Insurance
Corporation of India (2016)
Building Financial Resilience
of SAARC Countries against Natural Disasters: The
Insurance Option - SAARC
Disaster Management Center (2015)
Microinsurance Regulations
in India - Situational
Analysis and Assessment – for GIZ (2014)
About Us
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Foreword
Health and life insurance support is a must in today’s world characterised by
increasing longevity. Insurance also helps manage finances, in case a need
arises for urgent hospitalisation.
Covid-19 situation typically raised some questions in the minds of people. e.g.
whether or not the existing policies cover Covid-19 related claims? What are
the expenses covered and which all are not covered? How much insurance is
adequate?
To know the pulse of insurance buyers, their understanding of policy related
conditions etc. Insurance Institute of India contacted a good number of
insurance buyers from all over India through the network of Associate
Institutes and conducted a survey.
The research team has collected and collated the data provided by 493
respondents in a structured manner. We are happy to present the findings
which could be of use to the Insurance Industry and the Regulator.
We are thankful to the participants for sparing time to respond to the survey
and offer valuable inputs.
Deepak Godbole,
Secretary General, Insurance Institute of India
Mumbai, India, 8th September 2020.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Introduction and Background of the Survey
A large number of us probably will not remember any one event that touched as
many lives as deeply as the Covid-19 pandemic. Each and every one of us would
have encountered some sort of stressing vulnerability or at the very least, stressful
isolation. The public has understood that at the end of the day there is nothing of
more noteworthy significance than life and health. Since 11 March 2020, when
WHO declared Novel Coronavirus Disease (Covid-19) outbreak as a pandemic
and reiterated the call for countries to take immediate actions and scale up
response to treat, detect and reduce transmission to save the lives of people, the
world has undergone a change that will never make it the same again. The term
“new normal” is now here to stay as a way of life, perhaps forever.
At the beginning, the impact was great enough to cause the best of health care
facilities to collapse under the sheer magnitude of the numbers of Covid-19
patients. The WHO Country Office for India (WCO India) has been working
closely with the Government of India (GoI) to step-up preparedness and response
measures for Covid-19, including infection prevention and control, and
implementation of containment plan at all three levels of the health system –
national, state and district. The entire field presence, including the National
Public Health Surveillance Project, consisting of more than 2000 personnel has
been fully re-purposed to support the government to overcome this challenge.
In this scenario, the financial spend on health has suddenly spiked for those who
contracted the illness. The suddenness of this has left many struggling with out of
pocket spending thus pushing them further into poverty. Health Insurance
industry has reported a sudden surge in interest for health products. The regulator
responded with alacrity to the emerging situation and came out with a slew of
products to combat the situation and provide relief to the people. Over the last
few months these products have considerably evolved based on response from the
market to ensure that comprehensive cover is provided, which was finally given
shape to in the form of two policies launched some time back – Corona Kavach
and Corona Rakshak. The regulator also came out with special measures to be
adopted by the Insurance companies and Third Party Administrators to ease the
claim processing.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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We, at Insurance Institute of India, have been actively engaged with the market
to ascertain the response and effectiveness of the measures taken by the regulator
and companies. With this backdrop III has attempted a study to ascertain whether
in the situation of Covid-19 Pandemic, we can draw some inferences about
market sentiments vis a vis insurance emerging as a response to the pandemic and
its efficacy in dealing with the requirements of people. We have confined for
obvious reasons to Life and Health Insurance. We felt that particularly with
regard to the latter, new opportunities may present themselves. Hence the need
to explore the same.
The Objectives of this study were as follows:
To study the penetration level of health insurance and Life insurance
To find out if respondents were aware of the Covid-19 health and life
products launched during Covid-19 period.
To find out the willingness to purchase these products now due to
pandemic.
To study if the respondents were aware of the features of these products
and their satisfaction levels with them or if any additions were required.
To find out the about the awareness of the Government health insurance
schemes covering Covid-19.
Study of respondents with existing health plans, to understand their
awareness about the coverages vis a vis Covid-19.
To find out customers’ claim experience and the shortcoming thereof or
knowledge about claims procedures.
To understand awareness level amongst the public of the updates being
issued by Insurance Regulator frequently on Covid-19.
The sample of respondents - 493 for this survey was taken from various cities and
states and it is a random sample drawn mostly from people known to us or our
friends or their friends. The questionnaire was circulated through III’s Associated
Institutes in order to collect views from across the country.
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Limitations of the study: The respondents belong to a specific universe of educated
and professional people who may have a connection with insurance industry, hence
the findings of the study could be skewed to that extent.
The study was undertaken during August 2020 and experiences of people keep
changing as time progresses.
The Research Team: The study was carried out by Mrs. Madhuri Sharma, Faculty,
College of Insurance, with the support of Mrs. Akshara Nagpal and Ms. Laxmi Joshi
of III Research Team.
Mr. Deepak Godbole, Secretary General of III, Mr. Muktesh Chaturvedi, Director
of COI and Dr. George E Thomas, Professor, COI contributed variously to the
success of the study.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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46% respondents were from the age bracket of 35-50 years, denoting the working
population, followed by 32% between 50- 70 years (a mix of working, partially
employed and superannuated). 16% of the respondents were in the age group of 25-35
years and 4% were in the age group of less than 25 years.
Age
RESPONDENTS’ PROFILE
Less than 25 years, 4%
25 yrs - 35 yrs, 16%
35 yrs – 50yrs, 46%
50 yrs to 70 yrs, 32%
70 and above, 2%
Age of Respondents
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Out of the total respondents 82% were males and 18% were females.
Responses to the survey were mostly from the states of Maharashtra and Tamil
Nadu. This could be perhaps on account of more Covid-19 cases being reported
in these two states.
Gender
State/ Union Territory of Residence
Female 18%
Male 82%
Gender
35%
12%9%
6% 5% 4% 4% 4% 3% 3% 3% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1%0%5%
10%15%20%25%30%35%40%
State/Union Territory
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Nature of Employment
Private sector48%
Government service
22%
Self Employed12%
Retired from service
11%
Not employed7%
Nature of Employment
48% of the responses to the survey came from those working in the Private Sector,
while 22% responses were from those in Government employment. 12% came
from Self-employed people, 11% from retired employees and 7% from unemployed
people.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Number of Life Insurance policy holders
Question-wise Findings
The survey showed that 82% of the 493 respondents had a Life Insurance Policy.
Amongst the 82% of people who had a policy:
52% were in the age bracket of 35-50 years, 32% in 50-70 years’ age group,
14% in 25-35 years and 2% in the less than 25 years of age group.
54% were employed with private sector, 24% were in government
service,12% were self- employed,4% not employed and 6% were those
who had retired from service
72% of the female respondents had Life insurance policies (28% did not
have). Similarly, 84% of the male respondents had Life insurance policies
(16% did not have).
Yes82%
No18%
Percentage of Life Insurance Policyholders
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Sum Assured opted for in a Life Insurance Policy
Of the respondents, it was seen that
34% have opted for > 40 Lakhs of Sum Insured
24% have gone for 0-5 Lakhs of Sum Insured
21% have opted for 5-10 Lakhs of Sum Insured
11% opted for 10-20 Lakhs of Sum Insured
10% were in the range of 20-40 Lakhs of Sum Insured
Amongst those having Life Insurance policies 45% opted for range of 0-10
Lakhs, 21% were in the middle ranges of 10-40 Lakhs and a good 34% had sum
assured of more than 40 Lakhs.
Another rather surprising finding is that this 40 Lakhs and above segment was
dominated (90%) by those working in the private sector and self-employed people.
0- 5 Lakhs24%
10 – 20 Lakhs11%
20- 40 Lakhs 10%40 Lakhs and
above 34%
5-10 Lakhs21%
Sum Assured opted for Life Insurance
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Willingness to buy life insurance policy?
Out of those 18% respondents who did not have a Life Insurance policy, it was observed
that:
Although a huge 76% were not interested to change from their uninsured status, a
healthy 24% of hitherto uninsured showed their willingness to purchase Life
Insurance. This could be possibly an effect of the Covid-19 situation.
The breakup of this 24% who are likely to buy Life Insurance is as follows.
o 43% - age group of 25-35 years,
o 29% - age group of 35 to 50 years,
o 14% - age group of 70 years and above,
o 9% - age group of less than 25 years and
o 5% - age group of 50 -70 years.
32% of the uninsured females expressed willingness to buy Life insurance (the
remaining 68% were not interested), while 21% of the uninsured males were
willing to buy Life insurance (79% were not interested).
Looking at the employment profile of the uninsured respondents exhibiting
willingness to buy, it was found that employees in the Private sector showed the
highest level of willingness at 43%, followed by the unemployed respondents at
24%. 14% were in government service, 9.5% had retired from service and another
9.5% were self-employed.
Unlikely, 49%
Can’t decide, 27%
Likely, 12%
Extremely likely, 6%
Mostly Likely, 6%
Willingness to buy Life Insurance Policy
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Number of Health Insurance Policyholders
It was observed that 78% of the respondents have health insurance policies and
out of this
53% were working in private sector, 21% Government service, 11% self-
employed, 11% retired from service and 3% not employed.
52% were in the age group of 35-50 years, followed by 32% of 50-70 years,
13% from 25-35 years, 2% are from 70 years and above and 1% under less
than 25 years.
66% of the female respondents had Health insurance policies (34% did not
have). Similarly, 80% of the male respondents had Health insurance
policies (20% did not have).
No, 22%
Yes, 78%
Percentage of Health Insurance Policy
Holders
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Sum Assured opted for in Health Insurance Policy
From the responses it is observed that 26% respondents have opted for 0-5 lakhs of
Sum Insured and 26% for 5-10 lakhs. Another 18% respondents have 10-15 Lakhs
Sum Insured.
An analysis of respondents who have opted for 0-15 lakhs (69%) shows that:
85% of respondents in the age group of 25-35 years have opted for Sum
Assured of less than 15 Lakhs. Similarly 79% in age group of 35-50 years
have sum assured of less than 15 Lakhs.
48% of respondents in 50 years to 70 years of age band and 44% of
respondents in the age group of 70 and above have opted for Sum Insured
less than 15 Lakhs.
73% female and 69% males have opted for this Sum insured range.
81% of private sector employees, 87% of self-employed, 39% of retired from
service and, 36% of Government servants have opted for this Sum Assured
range.
An analysis of profile of those (31%) respondents who have opted for higher SI
>20 Lakhs:
56% of those in the age group of 70 and above and 52% of those in the age
group of 50 years to 70 years had opted for Sum Insured of more than 20
Lakhs. However, it cannot be said if they have bought a policy of higher SI
or have gradually increased the SI on reaching that age bracket.
21% were in the age group of 35-50 years and 15% were in 25-35 years age
group.
31% males and 27% females have opted for SI > 20 Lakhs
64% of those in Government service and 61% of the retired employees have
opted for SI >20 Lakhs
Similarly, 18% of those in the private sector and 13% of those who were self
-employed had opted for Sum Insured of more than 20 Lakhs
People at a higher age group were found to have policies of higher Sum Insured.
Further analysis showed that 46 % of the high sum assured Health policies were in
the nature of Group or Employer sponsored schemes.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Willingness to buy Health Insurance Policy
Can’t decide , 28%
Unlikely, 27%
Likely, 21%
Extremely likely, 13%
Mostly Likely, 11%
Willingness to Buy Health Insurance
It was found that 22% of the respondents did not have any health insurance cover.
While 55% of the respondents without health insurance were not willing to buy health
insurance, a significant 45% showed willingness to purchase Health Insurance.
To understand the potential of this category of people who were willing to buy
health insurance, further analysis was done and it was observed as follows:
53.6% of the respondents without health insurance in the age group of 25-35 years
showed willingness to buy health insurance.
51.5% of health uninsured in the age group of 35-50 years were also willing.
Similarly, 43% of those uninsured in the age group of 50-70 years were willing.
27% of uninsured respondents in the age group of less than 25 years were willing
to buy health insurance.
This willingness appeared more pronounced among uninsured males at 47.4 % as
compared to females at 39.4%.
61% among uninsured private sector employees, 45% of self-employed people,
40% of those in government service and 37% of unemployed people showed their
willingness to buy health insurance.
It was observed that 24% of the respondents who do not have a Life Insurance
Policy and 45% of those who do not have a Health Insurance policy have shown
willingness to buy Life insurance and Health insurance respectively.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Awareness about coverage of treatment for Covid-19 in a Health Insurance Policy
Awareness about Covid-19 specific policies being launched during Covid-19 period?
Awareness about the fact that Health Insurance policies do cover Covid-19
treatment was good (79%) across all respondents. Efforts by the insurance
companies and regulator seem to be effective in communicating to the public.
Do not know11%
No10%
Yes79%
Awareness of Covid-19 Treatment in Health
Insurance
Awareness about Covid-19 specific policies was good (80%) across all
respondents, which reflects that adequate media coverage has been given to
spread the required message by various companies, the Regulator and the
Government.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Purchasers of Covid-19 specific policy.
No81%
Yes19%
Percentage of Covid-19 Specific Policyholders
Of those who responded, 19% have bought this policy and about them it was seen
that:
57% are in age group of 35-50 years, 22% in the age group of 50-70 years,
18% in 25-35 years and 3% in less than 25 years’ group
Amongst the males 21% had bought this policy and amongst the females
6% had bought it.
69% of those were from the private sector, 13% from government service,
9% from self-employed category and 7% retired employees
Among the people who have purchased the specific Covid-19 health insurance
product, 97% already had a Health Insurance policy.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Willingness to buy Covid-19 insurance policy
Of the respondents, 32% stated that they were not able to decide, while 20%
were unlikely to purchase and the balance 48% were willing to buy.
Looking closely at the 48% who were willing to buy, it was observed that:
Gender-wise
57% of the males were interested in buying the specific coverage
Age-wise
In the age group of 25-35 years, 71% were willing to buy
In the age band of 35-50 years, 60% were willing to buy
In the less than 25 years of age band, 29% were willing to buy
In the age 50-70 years age group, 27% were willing to buy
Employment-wise
75% of those respondents who were self-employed,
59% of those employed in private sector,
43% of those in government service,
13% of the respondents who had retired from service and
11% of those who were not employed, were most likely to buy the Covid-
19 policy.
Can’t decide , 32%
Extremely Likely , 11%
Likely , 27%
Most Likely, 10%
Unlikely, 20%
Wiillingness to buy Covid-19 Policy
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Awareness about Covid-19 product features/conditions
There is good awareness of the features of the policy across all age groups and
gender. Importance of coverage’s is well known to all respondents.
Type of insurance protection most sought in Covid-19 products
The above reflects that overall the desire for cashless method of payment on
hospitalization is more amongst respondents.
2%
8%
9%
14%
15%
15%
18%
18%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Other
You can pay the premium in installments
Not aware of any features
It has a waiting period before it pays out
You can avail of quarantine expenses
You need to be hospitalised for 24 hours
Cost of PPE kits and other consumables are covered
Gives the full sum insured on testing positive
Awareness of Features in Covid-19 Specific
Policies
1%
15%
23%
23%
38%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Other
Get a fixed amount per day of hospital stay
Get a lumpsum benefit on diagnosis
Get hospital costs reimbursed
Get cashless hospital treatment
Features desired in Covid-19 Specific
Policies
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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No16%
Yes84%
Awareness of Pradhan Mantri Ayushman
Bharat Scheme
Good awareness is there which is very encouraging and reflects adequate
efforts have been made in spreading the message about the scheme.
Coverage of Covid -19 treatment under PMJAY Scheme
No48%
Yes52%
Awareness of Covdi-19 Treatment under
Ayushman Bharat Scheme
Only 52% of the respondents were aware that Covid-19 treatment was
covered under PMJAY scheme. There is scope for more dissemination of
information on a larger scale on this.
Note: It is possible that most of the respondents being not eligible for PMJAY scheme,
their income being higher than the threshold, the respondents did not know the scheme
and its coverages in depth.
Awareness about Pradhan Mantri Jan Arogya Yojana (PM-JAY) also known
as ‘Ayushman Bharat’ Scheme launched by Government of India
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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It was observed that the experience has been good with 69% of respondents
giving positive feedback, 25% giving an average feedback and only 6%
giving a negative feedback. The survey has probed into the reasons for this
negative feedback and the findings are given in the annexure in a concise
manner.
Experience of Health Insurance Claim processing by Insurance Company
4%
4%
21%
50%
21%
0% 10% 20% 30% 40% 50% 60%
Very Bad
Bad
Average
Good
Excellent
Experience of Health Claims Processing
by Insurance Company
Of the respondents, 71% gave a good review on their experience of Health
Insurance Claim processing by Insurance Companies.
21% gave an average feedback and only 8% gave a negative feedback. The
survey has probed into the reasons for this negative feedback and the findings
are presented in the Annexure in a concise manner.
Experience of respondents during Health Insurance Claim process at the hospital
3%
3%
25%
51%
18%
0% 10% 20% 30% 40% 50% 60%
Very bad
Bad
Average
Good
Excellent
Experience of Health Insured at the
Hospital
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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25%
8%
17%
33%
17%
0% 5% 10% 15% 20% 25% 30% 35%
Very bad
Bad
Average
Good
Excellent
Experience on Covid Claims processed by
Insurers
However, when it came to claims related to Covid-19 treatment, only 50% have
given a positive feedback while 17% have reported an average experience while
33% reported a negative experience. The survey probed into the reasons for this
negative feedback and the findings are given in the annexure in a concise
manner.
Experience during Death claim processing due to the Covid-19 pandemic
21%
5%
26%
37%
11%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Very bad
Bad
Average
Good
Excellent
Experience of Claim Processing in case
Death claims
It was observed that 48% of respondents were happy with the claim settlement
experience whereas 26% reported an average experience, and 26% gave a
negative feedback. Possibly the efforts of the regulator in giving specific
instructions to make the process hassle free and smooth has helped the industry
to some extent during this tough times. The negative experience though a
matter of concern could be possibly due to Covid-19 situation which could have
made documentation difficult.
Experience of Covid-19 claim processing done by Insurance Companies
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Awareness about the updates by the Insurance Regulator appeared good at
65%. However, considering that the people who have responded to this
survey may have better insurance awareness, more efforts might be required
to reach out to the masses.
No, 35%
Yes , 65%
Awareness of the updates by the Insurance
Regulator related to Covid-19
Awareness about updates issued by the Insurance Regulator relating to Covid-
19 from time to time
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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The survey of 493 respondents across age groups, gender and occupation was
carried out to understand insurance awareness and certain issues and concerns
with reference to the Life and Health Insurance Industry.
The findings provide an overview and summary of key analytical points of the
survey.
1) Age and Gender: The responses from the survey indicate that more
respondents in the age bracket of 35-50 and 50-70 years have a Life
Insurance policy. An almost equal number of females and males are
policyholders showing that financial literacy is on the rise amongst
females too.
2) Sum Insured: It was observed that amongst those having Life Insurance
policies 45% have opted for range of 0-10 Lakhs, 21% were in the middle
ranges of 10-40 Lakhs and a good 34% had sum assured more than 40
Lakhs. Another rather surprising finding is that this 40 Lac and above
segment is dominated (90%) by private sector employees and self-
employed group.
3) Willingness to buy (Life Insurance): The study found that 18% of the
respondents did not have any Life Insurance. When asked about their
willingness to buy, 24% of these people indicated their willingness to
purchase Life policies. It was also observed that more females were
willing to buy policies than males. It is interesting to note that the other
segments that showed higher levels of willingness to buy were (a) those
in the age group of 25-35 years, (b) those between 35 and 50 years of age;
and (c) and those employed mainly with private sector followed by
unemployed and government sector. However, only 5% of those in the
age group of 50-70 years indicated an interest to buy.
4) Willingness to buy (Health Insurance): An analysis of the profile of
health insurance policy holders shows that out of the 78% respondents,
the largest group of policy holders is from private sector and in the age
group of 35 to 70 years. It was also observed that among the male
respondents 80% had a health policy whereas among the female
respondents only 66% had a health policy.
5) The Range of Sum Insured increases with age: It was observed that
more respondents in the younger age group of 25-35 years had opted for
0-15 lakhs of Sum Insured compared to higher age groups which have
shown preference for more than 20 lakhs of Sum Insured.
Snap-shots from the Survey:
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In the first segment where the sum insured was less than 15 lakhs, 81%
were from private sector and 36% from government service, whereas in
the second segment it was the reverse, 64% from government sector and
18% from private sector had opted for more than 20 lakhs of Sum
Insured.
People at higher age groups were found to have policies of higher Sum
Insured. Further analysis shows that 46 % of the Health Policies having
high sum assured were Group or Employer sponsored schemes.
6) There is more willingness to buy: It was observed that 22% of the total
respondents did not have any Health Insurance policy. Of these, while 55%
were clear that they did not want to buy, 45% conveyed that they were
interested in buying Health Insurance.
Of these, 53.6 % of the respondents without health insurance in the age
group of 25-35 years showed willingness to buy health insurance. In the
age group of 35-50 years it is 51.5%, which reflects the growing interest of
the youth post Covid-19 to secure themselves financially on account of
health risks. Of the males 47% have shown more interest than 39% of
females. Private sector, self-employed and government servants have all
shown good interest.
A comparative analysis shows that 24% of the respondents who do not
have a Life Insurance Policy and 45% of those who do not have a Health
Insurance policy have shown willingness to buy Life insurance and a
Health Insurance policies respectively.
7) The Public in general, has good awareness about Covid-19 insurance:
The awareness about coverage of Covid-19 treatment in a health Insurance
policy and about specific Covid-19 products and its features is good in the
market, reflecting that the regulator has been effective in dissemination of
information in this regard though the scare created on account of high
medical expenses could have also been a contributory factor.
8) Purchase of Covid-19 products: Out of the respondents 19% had bought
a Covid-19 specific product, mostly from the age group of 35-70 years. 69%
of them were from the private sector, 13% from government service, 9%
were from self-employed category and 7% of retired employees had bought
the products.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Considering that among the people who purchased the Covid-19 product, 97%
already have a Health Insurance policy, one can surmise that the new products
served to fill a specific need-gap in the market.
9) It was observed that the willingness to purchase the Covid-19 specific product was
more amongst the younger age brackets (In the age group of 25-35 years, 71%
indicated their willingness to buy and in the age band of 35-50 years 60% were
willing to buy) Those who were self-employed and working in private sector,
amongst them 75% and 59% respectively were willing to buy.
10) There was good awareness about Regulator initiatives on Covid-19 Insurance.
It is possible that the good awareness levels about Regulator initiatives could be
because a good number of the respondents might have some connect with the
insurance industry. More efforts might be required to reach out to the masses.
11) With regard to Flagship Health Scheme of Government – PMJAY Ayushman
Bharat there is good awareness which is very encouraging and reflects that efforts
made by government agencies in spreading the message about the scheme have
been effective.
The survey has made an attempt to understand the preferences of the public regarding
the type of treatment desired while going for a Health claim and their experiences
while availing of those treatments. The following were observed:
a) Many respondents desired the cashless method of payment on hospitalization.
b) Had good experience with claims processing at the hospital as well as with
Insurance companies. Almost 70% respondents who have availed treatment
reported a positive experience overall.
c) However, when it came to Covid-19 related claims, only half of those who had
preferred claims reported a good experience about availing the treatment and
48% in case of death claims have given a positive feedback.
d) Some negative experiences were reported as part of the study. These were about
claims processing/ treatments at hospitals, insurance companies and Third
Party Administrators, mostly relating to overbilling, delays in pre authorization,
delay in settlement, cumbersome discharge procedures, deduction of expenses
without giving any reasons, to name a few.
Possibly the efforts of Regulator in giving specific instructions to make the claims
process hassle free and smooth during the times of Covid-19 has helped the industry
to some extent during these tough times. The negative experiences though a matter
of concern could be possibly due to impact of the Covid19 situation on multiple
agencies which could have made documentation difficult.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Conclusion and Recommendations:
Keeping in view the limitations of the survey, it can be concluded that there
appears to be good scope for growth of both life and health insurance, as there
is a lot of awareness generated post Covid-19
1) Based on the results it is recommended that the companies should focus
more on the younger age group within 25-35 years so as to catch them
young when the premium would be low with less chance of adverse
selection, thus ensuring a profitable portfolio.
2) There is a lot of scope for insurance companies to explore how higher
sum insured policies can be pitched to younger age groups, across various
employment segments as the survey indicates greater preference
exhibited in Private sector. This would offset the high claim ratios
emanating from higher age groups with large sum insured amounts.
Perhaps hybrid plans –savings combined with health insurance plans to
take care their medical needs in advanced years.
3) It is recommended that for Covid-19 specific products, the companies
must reach out to the age group of 25-35 years segment as considerable
interest has been expressed by this group
4) Due to increase in financial literacy amongst females, specific health
products be designed to target this segment and more outreach created
for them.
5) Dissemination of information about claim processing and procedures
should be done in all languages and circulated widely by the regulator.
6) Hospitals should be given TAT for discharge processes and Ombudsman
be set up to look into the grievance against them.
7) For reaching out to the younger age group digital platform needs to be
ramped up and user friendly interactive, personalized apps be deployed.
8) To ease the claims process during Covid-19 situation, a 24-hour helpline
to access the counsellors, information on travel, safety and security
related matters be provided free of cost by the companies.
9) Apps to address depression, anxiety and stress and wellbeing with an AI
driven chat function is required as a value addition for the customers.
10) Insurance companies, TPAs and hospitals need to be integrated
technologically so that simultaneous uploading of data can be done so
that all can access at the same time, thus saving considerable time.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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Annexures:
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
30
1) Experience with Insurers/TPAs during claims processing
1 Claim reimbursement process is rather cumbersome, with too much documentation.
2 Co-ordination between insured and insurer is poor.
3 Delayed response to customer queries.
4 No-coordination between the Hospital and TPA before and after Hospitalisation, resulting in delays.
5 Lack of training to agent results in the lack of knowledge and creates problem for customer at claims finalisation time.
6 Lack of time management at Insurer and TPA for admission and Discharge at Hospitals resulting in avoidable delays
7 Formalities for claim settlement are not cleared at one go. Getting cash refund from hospital is very difficult.
8 Difference in Package rates for reimbursement and cashless patients.
9 Non-settlement of claims within stipulated time.
10 Some old pre-existing diseases, not known to patient manifest symptoms immediately after taking the policy and the claims get rejected on the basis of non –disclosure.
11 In some cases, expenses incurred at the time of claim are deducted without assigning any cogent reasons.
12 Investigation of doubtful claims takes large time to settle.
13 Long follow-up with TPA and repeated documentation leads to late disbursement of claim.
14 Shortage of Net-Working Hospitals leads to chaos for prospective patients.
15 Requirements formalities given by TPA during the claim process are too many as a result of which, claim reimbursement takes too long.
16 Pre-authorization approval for cashless treatment is very difficult and time consuming.
17 TPAs did not respond to communication.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
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2) Experience with hospitals during claims.
1 Pre or Post hospitalization claim process is very difficult and it is cumbersome to get money released from insurer.
2 At the time of discharge, hospitals take long time for discharge procedures with the excuse of late / delay in approval of cashless from Insurer / TPA. Disputes over Non Payable Items / Heavy Administration Charges can be very daunting
3 Patients are given expensive treatment packages which may not be really required.
4 There is delay in cashless pre-authorization and admission without taking full deposit and Excessive billing at the time of discharge.
5 Hospitals, have a tendency of overbilling if the customer is found to be covered by a health insurance scheme.
6 Unnecessary diagnostic tests are recommended to escalate the bills by the hospitals.
7 During Covid-19 treatment patients have experienced non cooperative and non-empathetic behavior from the hospitals
8 Hospitals are charging exorbitantly for Covid-19 treatments even for simple procedures.
9 There is no regulation on Pharma Industry, Hospitals or Diagnostic labs as regards the charges being billed to the customers.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
32
The Covid-19 pandemic has revealed that the insurance world is not yet prepared to manage pandemic
situations. The most important aspect is that the virus cannot be defeated in isolation unless it is
defeated everywhere. It has also given us one great learning that we can only face this type of situations
through interdependence and global cooperation at economic, political and social levels.
Insurance Institute of India (III) has been a pioneering academic institution spreading Insurance
education and awareness since 1955 in India and also in multiple countries. III recognizes the
importance of cooperation with all stakeholders of the Insurance Industry at local and global levels. In
the process, in addition to conducting certificatory courses and examinations in multiple countries and
classroom training programs, III continuously provides platforms for exchange of ideas at local,
national and international levels through diverse channels like essay competitions, research reports, the
III Journal and other publications as well as thematic seminars, workshops and round table discussions.
One such round table discussion “III Virtual Round Table on Covid-19: Learnings for the Insurance
Ecosystem” was organized on the virtual mode on 8th September 2020, involving distinguished
dignitaries and thought leaders from Insurance Companies and Insurance Regulators of neighboring
countries including Bangladesh, Nepal, Bhutan, Sri Lanka, Maldives, Myanmar and Afghanistan. The
idea of this round table discussion was to share the experiences and responses of the insurance
ecosystem of different countries to the Covid-19 pandemic.
Mr. N D Kokare, Secretary, Insurance Institute of India (III), commenced the discussion by giving a
formal introduction to the activities of
Insurance Institute of India (III) and its
training arm, College of Insurance
(COI). This includes roles like
conducting training programs in different
streams of Insurance, conducting
professional examinations leading to
Licentiateship, Associateship and
Fellowship certifications, developing
study material, conducting researches
and surveys on Insurance related
subjects. He pointed out III’s mandatory
role in supporting the Insurance
Regulator as a training cum examining
body for Insurance Marketing Firms,
Health Third Party Administrators,
Web-Aggregators Corporate and
individual Insurance Agents. III trains
Insurance Brokers as well. In
collaboration with the University of Mumbai, III conducts Post Graduate Diploma in Health Insurance
(PGDHI) and in Insurance Marketing (PGDIM), as also Ph. D. Courses. He explained how III was
Release Function of III Survey – Impact of Covid-19 on Health and Life Insurance
(08th September, 2020) and ensuing deliberations at III Virtual Round Table on
Covid-19: Learnings for the Insurance Ecosystem
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
33
both responsible and responsive in playing its role for the Insurance Industry as it moved through
different phases during its journey of 65 years.
Mr. Deepak Godbole, Secretary General, Insurance Institute of India (III) welcomed the distinguished
participants and explained the context and relevance of the
Webinar. He drew their attention towards the new realities that
the pandemic situation had posed for the insurance industry
and the new challenges that were slowly unfolding before
insurers worldwide. The industry became aware of the low
insurance penetration and the new needs of the market. The
pandemic had forced the world to accept the new normal and
adapt to the same. Examples include working from home,
strengthening online customer servicing, realizing the futility
of high cost components like real estate and travel in running
the insurance business. Mr. Godbole suggested prioritization
of actions on Business Continuity Planning, Customer and
Employee Safety and Wellbeing, Crisis Management Task
Force, Stakeholder Communication, IT
Infrastructure Stability, Standardization
of Remote Working Practices and Cyber
Security. He pointed out that world’s
response to Covid-19 pandemic was
reactive as it was not ready for the same.
He informed that Insurance Institute of
India has responded well to Covid-19
situation by adapting to changes
immediately as required by the situation
including redesigning its courses,
resorting to online mode of training,
leveraging technology and undertaking surveys to understand the impact of Covid-19.
Mr. Muktesh Chaturvedi, Director, College of Insurance (COI), released the - Survey Report on “Impact of
Covid-19 on Health and Life Insurance" on this occasion. The
survey was conducted and prepared by III Research
Department. The survey attempted to ascertain how the Covid-
19 pandemic situation had influenced the sentiments of the
insurance market and to what extent the insurance industry
could respond to the requirements of people effectively. The
survey focused on Life and Health Insurance for obvious
reasons and tried to explore whether new opportunities
presented themselves. While explaining the importance of the
survey done, he pointed out about the negative effects of the
Covid-19 pandemic on human life and on the economy - by way
of disruption in supply chain, fall of interest rates, reduction in
insurance sales and renewals and disproportionate increase in health claims. He pointed out that neither
the affected countries nor the insurers were actually prepared for facing the Pandemic or its economic
fallout.
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
34
Mrs. Madhuri Sharma, Faculty, College of Insurance (COI), III presented an overview of the findings of
the Survey on “Impact of Covid-19 on Health and Life Insurance".
She shared the methodology adopted for doing the survey as also
the key findings, conclusions and recommendations for the
Insurance Industry. She added that the structured questionnaire
sent out by III’s Research Department directly and through III’s
Associated Institutes had received responses from 493
respondents from various cities and states of the country.
Thereafter, the Report on III Survey “Impact of Covid-19 on Health
and Life Insurance" was declared as released.
Prof. Archana Vaze, Assistant Professor, College of Insurance (COI), III initiated the ensuing discussions
and Round Table proceedings
and moderated the discussions
on the Impact of Covid-19 in
multiple countries. She requested
the distinguished participants to
share experiences from their
countries in the light of Covid-19
Pandemic and discuss the
insurance industry’s responses.
She urged them to talk about
matters of topical interest like
providing regulatory assistance,
introduction of new products, addressing legal concerns, application of Insure Tech and working from
home experiences.
Mr. Syed Moin Ahmed, MD, Green Delta Insurance, Bangladesh shared the experiences of Bangladesh
during Covid-19. The lockdown was first started on March 26 and extended till August. He opined that
Covid-19 had opened the eyes of insurance companies in Bangladesh. The pandemic had highlighted
the importance of Health Insurance, Retirement Benefits, development of IT infrastructures, and
designing the new products. Bangladesh Insurance Companies have witnessed huge number of
corporate queries for Insurance. Mr Ahmed stated that Life Insurance Companies of Bangladesh had
already extended their Health insurance coverages. They were also designing new Cyber and Pandemic
covers. The Covid-19 Pandemic had opened new opportunities for Insurers.
Covid-19 Experiences from Bangladesh:
Covid-19 Experiences from Different Countries
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
35
Mr. Chandana L. Aluthgama, CEO, Sri Lanka Insurance Corporation Ltd., Sri Lanka appraised the
participants about the Covid-19 situation
of the country. He mentioned that Covid-
19 cases were so far low in his country,
thanks to the various measures taken by
the Government, such as creating
awareness and declaring some services as
essential services. The Sri Lankan
Government had extended free Covid-19
cover for all officials fighting the Covid-19
pandemic in diverse ways. He informed
that the Government had declared various
financial concessions and credit facilities
to help citizens face the Covid-19 pandemic situation. He further informed that the insurance industry
had adapted to the new normal set by the government by embracing technology and working from
home, to serve the country.
Mr. Udeni Kiridena, CEO, Sri Lanka Insurance Institute (SLII) explained that the insurance industry of
the country had adapted to the changes very fast. The Insurance
Regulator, the Insurers, the Sri Lanka Insurance Association and the
SLII had realized the importance of collaborating and working with
better closeness during these difficult times. SLII was successful in
conducting online courses and online examinations during this period.
SLII officials visited Branch Offices of Insurance companies to
conduct Agents’ examinations maintaining social distancing norms.
In Mr. Kiridena’s assessment, the Country was on its way back to the
normal ways of working.
Mr. Bhoj Raj Sharma, Chief Executive Officer, Insurance Institute of Nepal and ex-Advisor, Beema Samiti
(Insurance Regulatory Authority of Nepal)
described the situation of Nepal in the face of
the Covid-19 pandemic. The country had been
through periodic lockdowns. Covid-19 cases
were going up, with a recovery rate of 65%. Mr
Sharma informed that the economy and the
GDP growth had been badly affected, the
supply chain had been thrown out of gear due
to lockdown conditions and migrant workers
had stopped sending remittances. The
hospitality industry, including tourism,
aviation, transport, agriculture and the insurance industry were very badly affected. He stated that the
Covid-19 Experiences from Sri Lanka:
Covid-19 Experiences from Nepal:
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
36
Insurance regulator had been playing its role to protect customers and that Insurers were not allowed
to reject claims due to the pandemic situation. The regulator had devised a Covid-19 policy to cover
Government employees. Mr. Sharma informed about the formation of an insurance pool to provide
cover for Covid-19 claims. The employees of the insurance industry had also adapted to the new normal
by working from home and selling policies on the digital platform. He pointed out that the Covid-19
pandemic had made people more aware about insurance.
Mr. Aung San, Chief Executive Officer, National Insurance Institute of Myanmar, informed that Covid-19
positive cases were still very low in Myanmar. The Government and the people were working together.
The Government had been taking various people-centric measures. Mr. Aung San further informed
that the impact of Covid-19 on the
overall economy was not too harsh
though there were some effects on
Insurance marketing and on the
transportation industry. The recently
opened up Insurance sector of
Myanmar had witnessed the Non-Life
insurers slowly trying to acquire some
share of the market, while Life Insurers
were still in the nascent stage. He
opined that as the Covid-19 pandemic
had increased the insurance awareness
of the people, adapting to technology
had become the need of the hour. He felt that the emerging scenario would help in the growth of the
insurance industry and hoped that there would be more recruitments in the Insurance sector.
Mr. Uz. Hassan Fiyaz, Executive
Director, Maldives Monetary Authority
spoke about the economy of Maldives.
He said that the Maldives was very
small country and the insurance
industry was also very small, with a
premium of around 60-million-dollars.
There were only 5 insurance companies
including one composite insurance
company. Maldives has a tourism
based economy and the Covid-19
pandemic had affected the tourism
industry badly. More than health of people, the pandemic had affected the economy of Maldives. The
Government had imposed lockdown and business was not happening. Covid-19 had affected Insurance
business in the country though there were very few numbers of claims due to the Covid-19 pandemic.
The Insurance Regulator was providing all necessary support to the Insurance Industry during this
Covid-19 Experiences from Myanmar:
Covid-19 Experiences from Maldives:
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
37
period of struggle. Mr. Fiyaz was hopeful that thing would be better once the lockdown was over and
the border was opened.
Mr. Mohamed Liwaz Latheef, Maldives Monetary Authority, added that the Financial Results had been
affected badly with a reduction of 25% in the premium of the second quarter. He too confirmed that
the Regulator has been continuously working with insurance companies and monitoring the situation.
In his opinion the new normal was likely to continue.
Ms. Yeshey Lhamo, Development Officer/ Assistant Manager, Financial Institutions Training Institute
(FITI), Bhutan sent her views
as a written note as the
communication networks
were not optimal.
She conveyed that on the first
detection of a Covid-19
positive case, His Majesty the
King initiated a host of
measures for the benefit of the
citizens of Bhutan.
Restrictions on gatherings
were imposed, schools were
closed, ‘work from home’ implemented, payments made through electronic modes, loan payments
deferred and measures taken to bring back citizens stranded in other countries. The Covid-19 pandemic
had affected Bhutan’s economy badly. In the month of August, the GDP was -6.7% because there was
zero revenue from Tourism and as all the businesses were closed due to the lockdown. With the
international border gates getting closed, the import of goods was affected and the construction industry
was affected. However, revenue from hydropower sector was not affected. She informed that Bhutan
has only two insurance companies the business of which were also affected negatively as project works
and import of vehicles etc. were halted. The use of technology had also increased but there was a
concern about cyber security.
Mr. Pradip Sarkar, Principal, College of Insurance (COI), Kolkata concluded the Virtual Round Table by
summarizing the takeaways. He
appreciated the speakers for sharing
the varied experiences and situations
of Covid-19 in their countries and the
impact of the pandemic on the
economy and the insurance industry.
He summed up the learnings from this
angle. He proposed the vote of thanks
to the participants and all others who
made the Virtual Round Table
successful.
Covid-19 Experiences from Bhutan:
III Survey – Impact of Covid-19 on Health and Life Insurance (Released on 8th September, 2020)
38
The Research Department of III
profoundly thanks the respondents of this
survey.
We look forward to your feedback on this
survey and the outcomes.
Email: [email protected]
The information contained herein is based on survey responses from experts in the field of insurance, conducted
during July/ August 2020 during the lockdown period, consequent to Covid-19. Insurance Institute of India (III) and/ or College of Insurance (CoI) carry no obligation to update the Analysis/ Report.
This document and any recommendations, analysis, or finding provided by III are not intended to be taken as advice/ prescription for any individual situation or commercial decision, whatsoever.
Contents from this document can be reproduced by providing a reference to the source document and publisher and, by informing III through an email- [email protected].
For more information on III and CoI, visit http://www.insuranceinstituteofindia.com.
Thought Leadership Initiative of Insurance Institute of India
Country-wise COVID 19 Statistics
Country Cases Death Cured (Number) Cured (%) Active
India 4204613 71642 3250429 77.31 882542
Bangladesh 327359 4516 224573 68.60 98270
Nepal 47236 300 30677 64.94 16259
Bhutan 233 0 151 64.81 82
Maldives 8667 29 6052 69.83 2586
Sri Lanka 3123 12 2926 93.69 185
Afghanistan 38494 1415 30557 79.38 6522
As on 7th September, 2020 Source : https://www.coronatracker.com/country