Insurance Regulatory and Development Authority of India (Irdai) has come out with the guidelines for two health insurance policies specifically providing cover against Covid-19.
Called as the “Corona Kavach Policy” and the “Corona Rakshak Policy”, insurers have been told to offer these plans to individuals by July 10.
Irdai said the policies should be offered for three-and-a-half months, six-and-a-half months, and nine-and-a-half months.
The sum insured for the Corona Kavach Policy (succeeded by the name of the insurance company), which is a standard indemnity-based Covid-19 policy, would range from Rs 50,000 to Rs 5 lakh (in multiples of Rs 50,000).
A standard indemnity plan is one which reimburses an individual’s hospitalisation expenses incurred by the individual up to the sum insured.
The mode of payment would be single premium.
The policy, the regulator said, should also include the cost of treatment for any co-morbid condition along with the treatment of coronavirus.
The insurers can also offer optional cover (available on a benefit basis) wherein they will pay 0.5 per cent of the sum insured per day for each 24 hours of continuous hospitalisation for the treatment of Covid-19. This benefit will be payable maximum up to 15 days during a policy period. The minimum entry age is 18 years and the maximum age will not be less than 65 years for all the insured members, including the principal insured.
The second plan — Corona Rakshak Policy— will be made available on a benefit basis. The minimum sum assured has been set at Rs 50,000 and a maximum at Rs 2.50 lakh. Individuals have to pay a lump sum amount, irrespective of the expenses incurred in hospitalisation. While the policy period will be the same as Corona Kavach, Irdai said that on payment of 100 per cent of the sum insured, the policy will be terminated.
“These Covid-19 specific policies are a good start and may later encourage people to opt for more comprehensive health insurance covers,” said Rashmi Nandargi, head-retail health underwriting, Bajaj Allianz General Insurance.
