Hyderabad: Amid the Covid-19 pandemic, several schools in the city have started offering insurance covering tuition fees to those taking out loans from the 2021-22 school year.
Most of them would offer insurance when parents choose to pay the fees through third-party companies. Parents said that instead of offering insurance only to those who take loans, the facility should be offered to everyone.
“If the intention is to provide insurance for the benefit of students, why not extend it to everyone? What is the logic behind providing it to those who take out loans to pay for tuition? It’s just a way to protect the school from defaulters, ”said Ashish Naredi, whose daughter studies in grade 8 at an international school in the city.
He said schools should provide insurance for everyone. “This should be fine even if they charge a nominal amount for insurance and cover student tuition for certain years in the event of an untoward incident.”
Another parent, whose child is studying in grade 6 at a school in Begumpet, said: “Although there were no insurance costs last year, I noticed that in addition April fees, the school also added book fees and insurance this year ”.
During the pandemic, several schools in the city and elsewhere around the country partnered with fintech companies to provide loans to parents. If parents chose to pay the fees through these companies, they had the option of paying the fees on a monthly basis instead of paying the fees eventually. In addition to the loan, insurance and rewards are also provided to parents.
In the 2020-21 school year, up to 3.8 lakh of parents, mostly school children, took out loans, which are given at zero or low interest rates. During the current school year, even more parents are opting for these loans.
Meanwhile, some schools are reportedly providing accident insurance to students, especially boarders.
“We offer accident insurance to residents, but we do not charge parents any amount. This insurance covers any accident, such as a student injured on the playground, etc., but not general health, ”said S Narasimha Reddy, principal of Hyderabad public school, Ramanthapur, adding that they do not provide no insurance for tuition fees.

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