The Corona Rakshak policy is a standard benefit-based health policy which will be offered on individual basis only. The sum insured under the policy will be Rs 50,000 to Rs 2.5 lakh.
Insurance Regulatory and Development Authority of India (Irdai) recently announced guidelines for two standard Covid-19 health insurance policies. The products, called ‘Corona Rakshak’ and ‘Corona Kavach’, will be launched by the insurance companies on July 10. Insurers are yet to announce the premium rates for the policies, but market participants say premiums for the policy will be approximately Rs 750 for a Rs 50,000 sum insured and over Rs 4,500 for a Rs 5 lakh sum insured.
The Corona Rakshak policy is a standard benefit-based health policy which will be offered on individual basis only. The sum insured under the policy will be Rs 50,000 to Rs 2.5 lakh. While Corona Kavach policy will be offered on indemnity basis with the sum insured ranging from Rs 50,000 to Rs 5 lakh.
Participants in the non-life industry say launching the Covid-19 specific cover is a welcome move as this will attract more investors into health insurance segment.
S Prakash, MD at Star Health and Allied Insurance said: “Hardly, 10% of the Indian population have some form of health insurance coverage, which includes private retail insurance or employer paid group insurance. This new Covid-19 specific cover can be first steps towards achieving adequate health cover for all citizens in India.”
Under the Corona Kavach policy, which is an indemnity plan will cover all the hospitalisation expenses that arise from the novel coronavirus. The launch of this product will ensure that hospitalisation expenses will be covered up to the sum insured.
Corona Rakshak is a fixed benefit plans in which if policyholder is diagnosed with Covid-19 and hospitalised for three days than a fixed amount (which is sum insured) will be paid by the insurance companies. The policy tenure can be 3.5 months, 6.5 months and 9.5 months, the waiting period is 15 days.
In the Corona Kavach policy, insurers can also offer optional cover for hospital daily cash, Irdai said in the guidelines. However, this optional cover will be made available only under benefit basis.
“Covid-19 specific cover is designed for the customers who cannot afford the comprehensive health plan & need security against such deadly disease. I would say that those people who do not have comprehensive health plan it is better to go for indemnity plans — which is Corona Kavach,” Amit Chhabra, head, health insurance at Policybazaar.com, said.