The IRDAI has issued the norms on renewability, portability and migration of standard Covid specific products – Corona Kavach and Corona Rakshak.
An existing Corona Kavach policy may be migrated to any other comprehensive health insurance policy.
Launched in July 2020, the Covid-19 specific health insurance plans – Corona Kavach and Corona Rakshak – were instant hit among the masses due to low premium, short policy terms and waiting period of just 15 days. Moreover, the features of the policies were standardised by the Insurance Regulatory and Development Authority of India (IRDAI) and hence policies offered by different insurance companies were similar.
However, due to short policy terms of Three and Half Months (3 ½ months), Six and Half Months(6 ½ months) and Nine and Half Months (9 ½ months), including a waiting period of 15 days, the renewal of policies of many policyholders might have become due now.
To facilitate the process, the IRDAI has issued the norms on renewability, portability and migration of standard Covid specific products – Corona Kavach and Corona Rakshak.
Guidelines for Renewal
The policies may be renewed further for the terms of 3 ½ months, 6 ½ months and 9 ½ months before the expiry of the existing policy contract.
On renewal, the coverage shall be continued seamlessly and additional waiting period of 15 days shall not be imposed.
Renewal of Corona Kavach and Corona Rakshak policies are permitted till March 31, 2021 and while renewing, policyholders may change the amount of sum insured (SI), which may be multiples of Rs 50,000 with minimum SI of Rs 50,000 and maximum SI of Rs 5 Lakh.
Portability of Corona Kavach policy is allowed from one insurer to another insurer without imposition of a fresh waiting period of 15 days.
An existing Corona Kavach policy may also be migrated to any other comprehensive health insurance policy of the same insurer or of any other insurer till the end of the policy period.
Guidelines for Migration
If opted for, insurers may allow migration of a Corona Kavach individual policy to any other indemnity based health insurance product offered by them.
Members of Corona Kavach Group policies may also be allowed to migrate to any other indemnity based health insurance product at the point of exit of the member insured from the group policy or the cessation of coverage of the underlying group policy.
The accrued gains of waiting period served in the existing Individual/Group Corona Kavach policy shall be protected at the time of such migration.
“IRDAI through this circular has allowed insurers for renewal, migration and portability of Standard Covid specific health policies. This is a welcome move as the Covid-19 vaccine is yet to come out and the purpose of these policies is to mainly cover the treatment costs against immediate health risks that people face due to the pandemic. Since its launch, the Covid-19 specific health policies have gained really good traction mainly due it’s short term coverage been looked at immediately,” said Gurdeep Singh Batra, Head – Retail Underwriting, Bajaj Allianz General Insurance.
“With this development, as insurers we will work towards safeguarding policyholders against the Covid-19 health risks, however, at the same time we would prefer that such insuring population eventually opts for comprehensive health insurance policies, after realising the important role that health insurance plays in times of such exigencies and future complications,” he added.