A number of e-commerce companies across India are now offering insurance cover and income protection plans to their delivery partners, local vendors and supply-chain associates.
Financial daily Livemint reports that with coronavirus cases rising rapidly it is important for these companies, especially those engaged in food and goods delivery business.
These companies face greater risks of revenue loss as they depend on delivery executives who are more likely to contract the respiratory disease given the nature of their operations.
Most of the e-commerce companies such as Flipkart, Zomato, Swiggy, BigBasket and Amazon have purchased medical insurance covers ranging from $670 to $6,660 for their delivery workforce, both permanent and freelance staff.
ICICI Lombard General Insurance chief of claims, underwriting and reinsurance Sanjay Datta told Livemint, “Companies, mostly in the e-commerce sector, who have frontline workers and delivery boys, are now buying insurance plans with sum assured of up to $6,660 per person to cover against COVID-19 risks. The premium for such products is around $34.”
He said the size of the employees’ medical insurance business (taken by companies) is around $1bn at present and poised to grow at 30-40%.
India is now the third worst pandemic-affected country in the world, with total reported cases at 1.04m so far. Most major cities and metros have seen a surge in cases over the past few weeks.