The COVID-19 pandemic has brought calamity around the world,
affecting the daily human and business activities. As at the end of June 2020,
there were over 505,000 confirmed Covid-19 related deaths, with a positive note
of over 5.21 million recovered cases globally (1). On the African
continent however, the number of affected people for the period under review
has increased to over 390.000 confirmed cases, while death cases recorded at
close to 10.000 and are expected to rise.
COVID-19 is having a major impact on businesses’ key resource,
Human Capital, which is also regarded as one of the major assets within an
organisation (2). When organizations prioritize this asset, they in return produce
better leaders, more effective managers with better decision-making skills, all
resulting in greater returns on investment. It is prudent to establish all the
necessary measures in place to safeguard this resource. The World Health
Organization has advised and emphasized on the importance of wearing face
masks, constant washing and sanitizing of the hands and respecting social
distancing to curb the spread of the virus. Organizations can put in place a
number of policies and plans to further safeguard the health and well-being of
their employees.
Medical Insurance Plan
From a Risk Management point of view, organizations have an option
to transfer the medical and all related costs entailed from Covid-19 to a risk
carrier such as an insurance company. From the observations made, not all
COVID-19 cases turn out to be fatal. Also, on all the active cases recorded, it
is of no doubt that there would be various medical expenses incurred in order
to detect the virus. Costs like the costs for screening, testing, medical
outpatient treatment and medical inpatient treatment for those who experience
serious complications requiring ventilators to assist the respiratory organs to
fight the virus can be transferred to a Medical Insurance Plan.
Emergency Evacuation
The available Medical Insurance Plans are not only limited to cater
for COVID-19 cases. The cover is broad and can be tailor made to include emergency medical
evacuation for non-COVID-19 cases, such as heart attacks, and/or motor
accidents, amongst other risks. Evacuation can be done from one
province/district to another or from one country to another. Depending on the
severity and magnitude of the case, a detailed medical report of the patient
will determine whether evacuation will be carried out by road or air
transportation. There are different types of medical insurance packages
available, depending on the specific requirements and needs; covers and
benefits can be tailor-made to the requirements of each and every individual
client.
Funeral Plan
There is nothing that can be compared to losing a loved one. For
those cases of COVID-19, which result in the passing away of an employee, a
funeral plan would be the right solution to cover the costs associated with the
funeral of the deceased. If a funeral plan is not in place, these costs may
fall upon the company of the deceased employee as the family generally expects
assistance from the company. A Funeral Plan works in much the same way as other
types of insurance. One decides how much funeral cover you want to buy and who
should be covered. A decision to take out Funeral Plans should form part of a
proper financial plan. A typical Funeral Plan cover includes the employee,
spouse, and several if not all children from ages zero to twenty-one years old.
This cover is not complicated to administer, as pay-out is immediate and the
requirements in the event of a claim will be the submission of the death
certificate, copy of the identity document of the deceased employee and details
of the loved one(s) to receive the disbursement. The level of cover will depend
on the specific requirements of the insured.
Group Life insurance
As the COVID-19 pandemic is falling outside the scope of
work-related protection covers such as the Workman’s Compensation, Employers
Liability, and Group Personal Accident policies, the best solution that will
provide peace of mind to both employees and employers will be the Group Life
insurance. Through this product, the employee is guaranteed to have
compensation paid out to his family/estate should he pass on from COVID-19.
This removes the burden from the employer of having to continue to provide for
the family of the deceased employee. The burden can be quite significant,
should it so happen that an organization loses several employees from COVID-19
and these losses all happen to be at senior levels. When an organization
decides to purchase Life insurance, the risk is passed on to the insurance
company. A risk manager can offer advice and guidance to clients on how best to
structure these policies, so the organization and its employees derive the best
benefits.
Permanent Total Disablement
Group Life insurance will not only be providing solutions for death
related benefits but can be further extended to include cases whereby employees
suffer permanent and/or total disablement from an accident or an illness. This
will apply to employees who are no longer able to pursue their day to day
activities they are trained and schooled for. With the assistance from the
doctors, the level of disability will need to be determined for the purpose of
this policy to pay out compensation to the disabled employee.
Critical Illness Cover
There has been a prevalent increase in critical illnesses such as
heart disease, cancer, kidney failure, and paralysis
amongst others. Organizations may opt to purchase a critical illness cover for
their employees to cover expenses related to the treatment of such
illnesses. Should it so happen that the organization grants an early retirement
to an employee due to a critical illness, the pay-out from this policy can
become part of the retirement package.
Munya Sanyika | Director Técnico ǀ Minseg
Corretores de Seguros
References
1) World Health Organization Situation report 153
2) Harvard Business School
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