The Insurance Regulatory and Development Authority (Irdai) on Tuesday allowed insurance companies to offer policyholders the option of renewing, migrating and carrying two health insurance policies specific to the coronavirus: Corona Rakshak and Corona Kavach.
In the wake of the coronavirus crisis, the insurance regulator had asked insurers to offer standardized COVID-19 health insurance policies. Launched in July, Corona Kavach is an indemnity plan that will cover all hospitalization expenses. The cost of treatment for any comorbid conditions, including pre-existing comorbid conditions along with treatment for COVID-19, will be covered by this policy. The sum insured in the Corona Kavach policy ranges from ₹50,000 to ₹5 lakh. The validity of the policy varies between three and a half months, six and a half months and nine and a half months.
Corona Rakshak is a fixed benefit plan in which if an insured is diagnosed with COVID-19 and is hospitalized for three days, the insurance companies will pay a fixed amount (which is the insured sum). For the Corona Rakshak policy, the minimum sum insured would be ₹50,000 and the maximum limit is set to ₹2.5 lakh. Their mandate will vary from three and a half months to nine and a half months.
In renovation:
The insurer allowed the companies to renew the ‘Corona Kavach’ and ‘Corona Rakshak’ policies for a period of three and a half months (3 and a half months), six and a half months (6 and a half months) or nine and a half months (9 months and a half). ). “The renewal will be subject to the underwriting policy of the insurer,” Irdai said.
For any increase in the sum insured, the waiting period will start over only for the improved part of the sum insured, the insurer said.
The customer must renew the policy before the expiration of the existing policy contract. If policyholders wish to renew their policies, an additional 15-day waiting period will not be imposed. To benefit clients, the regulator allowed the insured to change the sum insured.
Corona Kavach and Corona Rakshak policies can be renewed until March 31, 2021, the insurer added.
About migration:
For Corona Kavach individual policies, insurers have the option of offering migration to any other indemnity-based health insurance product they offer.
For Corona Kavach Group policies, insurers will have the option of providing migration of insured members to any other individual health policy based on indemnities at the point of departure of the insured member from the group policy or termination of insurance coverage. the underlying group policy.
About portability:
General and health insurers may allow portability of the Corona Kavach (individual) policy from one insurer to another. “Accumulated earnings from the waiting period served on the existing Corona Kavach policy will be protected with respect to COVID-19 coverage, by the carry-over insurer,” Irdai said.
“When insurers allow migration / portability of the Corona Kavach policy (group / individual, as applicable), such migration / portability to any other comprehensive health insurance policy will be allowed, until the end of the policy period,” he added . .
What does it mean for policyholders
“The announced guideline will benefit consumers in many ways, offering them a comprehensive blanket protection plan when they need it most,” said Amit Chhabra, head of health insurance at Policybazaar.com.
“Those who were unable to purchase a plan with a higher sum insured in the first few months can now even increase the sum insured in case they feel the cost of treatment may go up and they need comprehensive protection,” he added.
“By allowing customers the option to migrate or migrate from a Corona Kavach policy to any other comprehensive health insurance coverage, until the end of the existing COVID policy period, it further helps policyholders to transition smoothly to a coverage that provides protection together with Covid, thus increasing the levels of insurance penetration in India, “explained Chhabra.
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