Insurance regulator Irdai is considering a plan to extend the tenure of Covid-19 specific products as the vaccine for the disease is likely to take some more time, its chairman Subhash C. Khuntia said on Thursday.
The watchdog is also working towards facilitating a standard product for coronavirus, which will be easy to understand and will not require “voluminous policy documents”.
“With regard to extending the tenure of the Covid-19 related products, we are hoping that the vaccine would not be delayed for too long. But now that it appears that it will take some more time, we will take a decision about extending the tenure of the policy at an appropriate time,” Khuntia said while addressing the CII Insurance and Pensions Summit webcast.
Corona Kavach, launched on July 10 and is being offered by both general and health insurers, is a standard health insurance policy created to meet the treatment requirements for coronavirus infection.
The term of the policy ranges from three-and-a-half months to nine-and-a-half months, with a maximum insured amount at Rs 5 lakh.
On new Covid-19 insurance products, Khuntia said, “We are coming out with a standard product which is to be sold by all the companies so that it becomes much easier for the policyholder to pick up that product.”
Pandemic pool
A working group of Irdai has suggested setting up of a pandemic risk pool with a Rs 75,000 crore backstop guarantee from the government in the initial stages, with a view to help MSME workers and migrant labourers facing loss of income.
