Insurance companies to offer Mashak Rakshak policy from April 1 – Should you opt for it?

By: |
March 25, 2021 7:03 PM

If bought as an additional cover, over and above an existing health insurance policy, the vector-borne diseases policy could compensate for the loss of income with its lump-sum payment, while the standard health insurance policy covers the hospitalisation expenses.

health insurance, Mashak Rakshak, vector-borne diseases, dengue, malaria, standerdisation of health insurance policies, renewal premium, increase in health insurance premium, Insurance Regulatory Authority of India, IRDAI, IRDAI changes norms, Novel Coronavirus Covid-19, nationwide lockdown, health insurance, Covid-19 vaccine, health insurance claim, Covid-specific policies, Corona Kavach, Corona RakshakThese policies are simple and easy to understand as the standard policy have no variants across insurers.

From April 1, all general and health insurance companies are supposed to offer Mashak Rakshak, a standard vector-borne disease health policy, as per the guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI).

Vector-borne diseases dengue and malaria are among the most common diseases, that are transmitted by mosquitoes, ticks, etc. People fall prey to such diseases during the monsoon season. At the same time with the rising cost of medical care, treatment of these diseases ranges anywhere between Rs 25,000 to Rs 1 lakh or more.

Even though there are various related policies in the market, standard vector-borne disease health policies are introduced prior to the onset of the monsoon, so that people can opt for such policies in advance and get the proper treatment.

The key features of these policies are slightly different as compared to standard health insurance policies. For instance, the benefit of these policies is paid only as a lump sum on diagnosis. Having said that, a standard vector-borne disease policy can also be opted either as an individual and floater cover. The sum insured usually ranges between Rs 10,000 to Rs 2 lakhs. These policies come with a tenure of 1-year, and with most policies, the sum insured can be increased in multiples of Rs 10,000.

Industry experts say, these policies are simple and easy to understand as the standard policy have no variants across insurers, wherein the price comparison also becomes easy. At the same time, as it’s a single-premium plan, experts say lower-income groups could find it difficult to pay the premium at once. Also, note that treatments outside India are not covered. For sum insured between Rs 50,000 to Rs 1 lakhs, the policy premium ranges between Rs 800 to Rs 3,000, depending on the type of policy.

Opting for these type of policies will provide an added layer of protection to those individuals who have an existing health insurance policy or depend solely on their corporate policy. Also, according to experts, people who are unable to get a comprehensive health cover could opt for this. For instance, it could be useful to senior citizens, who do not have any other policy so that they would have some protection.

If bought as an additional cover, over and above an existing health insurance policy, the vector-borne diseases policy could compensate for the loss of income with its lump-sum payment, while the standard health insurance policy covers the hospitalisation expenses.

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