IRDAI had asked insurers to design need based products covering costs of treatment of coronavirus.
If you haven’t purchased a Coronavirus health insurance plan yet, there is good news for you.The Insurance Regulatory and Development Authority of India (IRDAI) has extended the time line to offer and renew short term Covid specific health policies up to September 30, 2021. The guidelines on the introduction of short-term health insurance policies provide coverage for the COVID-19 disease were introduced in June 2020. Such Short term health insurance policies were to be issued for a policy term of less than 12 months and the guidelines were valid till March,2021.
To meet hospitalization costs arising out of Covid-19, there are two specific insurance plans. One is the Corona Kavach policy which is being offered by general and health insurance companies only,while the other one is Corona Rakshak policy which may be offered by all insurers, including life insurers.
IRDAI had asked insurers to design need based products covering costs of treatment of coronavirus (COVID-19)disease. All insurers (Life, General and Health Insurers) were allowed to offer COVID – 19 specific short term health insurance policies subject to these guidelines.
Recently, the IRDAI has extended the timeline and all insurance companies including Life, General and Health Insurers are allowed to offer and renew short term Covid specific health policies up to September 30, 2021.
Corona Kavach and Corona Rakshak – Differences
Who offers them
Corona Kavach Policy, the COVID Standard Health Policy needs to be compulsorily offered by all general and health insurance companies and life insurance companies cannot offer them. To buy Corona Rakshak Policy, one may approach any insurer including the life insurance company.
Minimum and maximum
The minimum sum insured for Corona Kavach Policy is Rs 50,000 and the maximum is Rs 5 lakh while for the Corona Rakshak Policy, the minimum sum insured is Rs. 50,000 and the maximum limit shall be Rs.2.5 lakh.
In the Corona Kavach Policy, the base coverage or the sum insured will apply only when there is a hospitalization of a minimum period of 24 hours. The hospital expense up to the sum insured will be paid as claimed by the insurer irrespective of the days of stay in the hospital. But, in the case of Corona Rakshak Policy, it requires hospitalization for a minimum continuous period of 72 hours.
Nature of policy
The Corona Kavach Policy shall have One Basic mandatory cover and One Optional Cover. The premium payable towards this Optional Cover Will have to be paid separately so as to enable policyholders to choose and pay based on the need. The Base Cover of Corona Kavach Policy will be offered on Indemnity basis whereas Optional Cover shall be made available on Benefit Basis.In an indemnity cover, the claim is paid as per the hospital bills while in a Benefit cover, the entire sum insured is paid to the policyholder.
Type of policy
One can buy Corona Kavach both on an individual basis and on Family Floater basis but Corona Rakshak is offered on an individual basis only and hence no Family Floater option is available in it.
The Corona Kavach Policy gives one the option to add ‘Hospital Daily Cash’ cover. Under it, the insurer will pay 0.5 per cent of the sum insured per day for every 24 hours of continuous hospitalization for treatment of COVID following an admissible hospitalization claim under this policy. The benefit shall be payable maximum up to 15 days during a policy period. However, there is no such feature in Corona Rakshak policy as it is entirely a benefit-based plan.