Due to the rapid surge in coronavirus cases in India, The Indian Insurance Regulatory and Development Authority has instructed all health insurance companies to launch two insurance policies to help people with more conventional health insurance coverage in their fight against the coronavirus pandemic.
These policies are Corona Kavach and Corona Rakshak
Corona Kavach, which is a standard health policy, will cover the charges of treatment of any co-morbid infirmities, including pre-existing maladies, along with the treatment for the coronavirus infection. The other policy is Corona Rakshak, which is a standard welfare policy based on benefits such as health.
These COVID-19’s medical insurance policies will launch on July 10. This step will provide relief to patients who are struggling to manage the amount for treatment of COVID-19.
COVID-19 Policy Covers
In “Corona Rakshak“, if a positive diagnosis of Covid-19 requires hospitalization for at least 72 consecutive hours, a one-time compensation equal to 100% of the insured amount will be paid in one lump sum. A positive diagnosis of COVID should be carried out by a government-authorized diagnosis center, and the base cover of “Corona Kavach” will provide hospitalization expenses, such as room and boarding charges, gloves, masks, PPE kits, and similar costs, and even it also includes AYUSH treatment.
Minimum and Maximum Entry Age
For persons covered by a benefit-based policy (Corona Rakshak), the minimum entry age should be 18 years and the maximum entry age should not be less than 65 years. For Corona Kavach, the minimum entry age of the main insured is 18 years, and the maximum entry age of all insured members (including the main insured) must not be less than 65 years. The age of dependent children can vary from day 1 to 25 years, but must meet the definition of “family”.
The cover of Corona Rakshak shall be provided according to benefit basis, while the basic cover of Corona Kavach will be given according to the compensation principle, and the optional cover shall be provided according to benefit basis.
The Minimum and Maximum sum insured
For Corona Kavach, the minimum insured amount is Rs 50,000 only, while the maximum insured amount is Rs 5,00,000 only. For Corona Rakshak, the minimum sum insured will be Rs. 50,000 /- (fifty thousand only). The maximum limit will be 250,000 rupees (Two lakhs and Fifty Thousand only) (in the multiple of 50,000).
The policy will provide on Individual/Family Basis
COVID’s health policy based on standard interests (Corona Rakshak) will be provided individually only. It can be distributed over all distribution channels, including small insurance agents, common public service centers, and point-of-sale personnel.
Corona Kavach will be offered on the basis of family members, which also includes legally married spouses, parents, and parents-in-law, dependent or adopted children (that is, natural or legally adopted children), between aged 1 day to 25 years old. If a child over 18 years old is financially independent, he/she will not be eligible for this insurance.
The policy period of Corona Rakshak is three and a half months, six and a half months, and nine and a half months, namely 105 days, 195 days, and 285 days respectively.
Corona Kavach’s policy period is three and a half months, six and a half months, and nine and a half months, including the waiting period.
Premium payment method
A single premium payment method will only be permitted for both policies.
Price of the Policy
The premium for Corona Rakshak and Corona Kavach products will be based on pan India and pricing based on geographic location/zone-based is not permitted.
All general insurance companies and health insurance companies are empowered to publish COVID-19 products under the names “Corona Kavach Policy” and “Corona Rakshak Policy”, beginning with the company name only. It has been mandated for all insurers to launch these products next month, i.e. most probably on 10 July.
Milind V. Kolhe, chief underwriting, and reinsurance officer of Bharti AXA General Insurance, commented on the regulator’s guidelines on harmonizing COVID-19 health insurance products: “We welcome the regulator’s initiative to launch COVID insurance products when it is most needed”. In an unprecedented era, Customer-centric is the main theme of these products.
The hallmark feature is the uniformity of policy wordings across the market. Claims management will be an important aspect of these products, and insurance companies are working closely with the General Insurance Committee to rationalize treatment costs. As a responsible insurance company, we are fully committed to creating innovative and efficient solutions for our customers in an appropriate manner”.
How to avail of these policies?
Policyholders can avail of these services in a cashless manner. The service will be arranged by the insurer or agent through the network provider.