If you have not yet purchased a coronavirus health insurance plan, there is good news for you.The Insurance Regulatory and Development Authority of India (IRDAI) has extended the deadline for proposing and renewing short-term Covid-specific health policies until September 30. , 2021. Guidelines for introducing short-term health insurance policies providing coverage for COVID-19 disease were introduced in June 2020. These short-term health insurance policies were to be issued for a term less than 12 months and the guidelines were valid until March 2021.
To cover hospital costs related to Covid-19, there are two specific insurance plans. One is the Corona Kavach policy which is offered only by general and health insurance companies, while the other is the Corona Rakshak policy which can be offered by all insurers including life insurers.
IRDAI had asked insurers to design needs-based products covering the costs of treating coronavirus disease (COVID-19). All insurers (life, general and health insurers) were allowed to offer COVID – 19 specific short – term health insurance policies subject to these guidelines.
Recently, IRDAI extended the schedule and all insurance companies, including life, general and health insurers, are allowed to offer and renew Covid-specific short-term health policies until September 30, 2021. .
Corona Kavach and Corona Rakshak – Differences
Who offers them
Corona Kavach Policy, the standard COVID health policy is a must be offered by all general and health insurance companies and life insurance companies cannot offer them. To purchase the Corona Rakshak policy, one can go to any insurer, including the life insurance company.
Minimum and maximum
The minimum sum insured for the 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 will be 2.5 lakh of rupees.
In the Corona Kavach policy, the basic coverage or sum insured will only apply in the event of hospitalization for a minimum period of 24 hours. Hospital costs up to the sum insured will be paid as claimed by the insurer regardless of the days of hospital stay. But, in the case of the Corona Rakshak policy, it requires hospitalization for a minimum continuous period of 72 hours.
Nature of policy
The Corona Kavach policy will include basic mandatory coverage and optional coverage. The premium payable for this optional coverage will need to be paid separately to allow policyholders to choose and pay as needed. The basic coverage of the Corona Kavach policy will be offered on an indemnity basis while the optional coverage will be made available on a benefit basis.In an indemnity coverage, the claim is paid according to the hospital bills while that in a benefit coverage, the entire sum insured is paid to the policyholder.
Corona Kavach can be purchased both on an individual basis and on a Family Floater basis, but Corona Rakshak is offered on an individual basis only and therefore no Family Floater option is available.
The Corona Kavach policy offers the option of adding “Hospital Daily Cash” coverage. Under it, the insurer will pay 0.5 percent of the sum insured per day for every 24 hours of continuous hospitalization for the treatment of COVID following an eligible hospitalization request under this font. The benefit is payable for a maximum of 15 days during an insurance period. However, there is no such feature in Corona Rakshak’s policy as it is entirely a benefit-based plan.