Some Brazilian Insurance Companies Relax Rules, Now Cover Coronavirus Deaths

RIO DE JANEIRO, BRAZIL – Worldwide, life and lender insurance (which guarantees the payment of financing and debts in the event of death and disability) does not usually cover pandemics such as the novel coronavirus.

This is because the risk of such scenarios happening is typically very low. But in view of the current turmoil, a number of Brazilian insurance companies are now covering deaths from the virus. This is the case of Itaú Seguros, Zurich Santander and BB Seguros.

Itaú Unibanco decided, for the first time and voluntarily, not to exclude the covid-19 from death coverage in its life insurance policies. The measure is valid for customers with up-to-date policies and who meet the remaining contractual requirements, even after the disease was declared a pandemic by the World Health Organization (WHO).

Itaú reinforces that the measure can be reviewed at any time and is available to customers for any queries.

Zurich Santander has also decided to indemnify customers for potential occurrences related to the pandemic with current life, home, lender, personal accident and travel insurance policies, although the products exclude coverage for events of this nature. “The claims will be analyzed according to existing procedures, observing the sector regulations as well as the atypical moment we are experiencing,” says the company, in a note.

BB Seguros has decided that it will exceptionally guarantee the full payment of life insurance claims (individual and group) and lender insurance in the event of confirmed deaths by covid-19. Compensation will be guaranteed both for existing policies and for new contracts as long as new customers do not have pre-existing conditions.

Agibank digital bank has launched, in partnership with the insurance company Generali, a life insurance with coverage that contemplates natural and accidental death, which also includes occurrences of death by the covid-19. The protection has low purchase cost and offers the amount of R$150 for the purchase of drugs in pharmacies for each emergency consultation performed.

Pandemic is an incalculable risk

Insurance is designed to cover foreseeable risks. Foreseeability of risk makes it possible to price the insurance and collect a premium. Therefore, pandemics and natural disasters coverage are typically excluded from policies, says Márcio Coriolano, president of the National Confederation of General Insurance Companies, Private Pension and Life, Supplementary Health and Capitalization (CNSeg).

But at times the clauses are revised as a means to provide some comfort to the population. “However, this may vary according to the contract and is up to each insurer to decide, who has to bear the increased risks and verification.”