The IRDAI Extends the Deadline for Corona Kavach and Corona Rakshak

As per the earlier norms of the IRDAI, Corona Kavach and Corona Rakshak policies could be sold and renewed till 30th September 2021. However, considering the current situation and possibility of a third wave of COVID-19, in its latest circular the IRDAI stated that these short-term COVID-19 specific insurance policies can be sold and renewed till 31st March 2022. Hence, while buying or renewing the COVID-19 specific insurance policy, policyholders can choose a policy period of 3.5 months, 6.5 months, or 9.5 months, which will be valid till the end of March 2022.

While many countries continue to remain under lockdown, several others are gradually returning to their pre-pandemic routines. With public hotspots like offices, malls, hotels, and travel destinations opening their doors, protecting yourself and your loved ones with COVID-19 health insurance while taking the necessary precautions has become vital.

Presently, a majority of health insurance policies provide coverage for the medical expenses arising out of COVID-19. But, having an exclusive COVID-19 health insurance policy in addition to your existing health insurance policy can be beneficial in the following ways:

1. This policy is specifically for COVID-19 coverage; hence, the premium is relatively lower than a top-up on your existing health insurance policy.

2. You can save the No Claim Bonus of your existing policy by using the COVID-19 policy for COVID-19 coverage.

3. Even if you do not have any health insurance policy, buying a COVID-19 insurance plan will serve as financial protection for treatment against the deadly virus.

4. It is not a long-term commitment as the plans are available for shorter durations.

5. The premiums of the COVID-19 insurance policies are affordable as they are targeted to a specific illness.

The two types of COVID-19 health insurances available in India:

The Government of India and the Insurance Regulatory and Development Board of India (IRDAI) had mandated all general insurance companies must provide COVID-19 coverage under Corona Kavach Policy. However, with the increase in the spread of the virus, the IRDAI has permitted the issuance and renewal of the policies. Like any other insurance, Corona Kavach and Corona Rakshak insurance policies are governed by the IRDAI.

1. Corona Kavach:

• It is purely a health insurance plan and only health insurance companies can offer them.

• Corona Kavach is an indemnity-based health insurance that can be purchased for an individual or a family.

• This plan covers COVID-19 hospitalisation expenses, medical expenses, pre and post-hospitalisation medical expenses, ambulance expenses, AYUSH (Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy) treatment, and home care treatment. The minimum hospitalisation period is 24 consecutive hours.

• The cooling period for Corona Kavach is 15 days, unlike 30 days for normal health insurance. 

• Anyone between 18 to 65 years of age can buy this plan. And, members below the age of 18 can be added as children in the family floater Corona Kavach.

• The sum assured can be chosen from Rs 50,000 to Rs 5,00,000.

• Available for short tenures of 3.5 months, 6.5 months, and 9.5 months.

• Up to 15 days of pre-hospitalisation and up to 30 days of post-hospitalisation expenses are covered.

• Up to Rs 2000 can be claimed for road ambulance per hospitalisation.

• There is no cap on the room rent taking into consideration the shortage of hospital rooms.

• Corona Kavach extends its coverage to the consumables such as, PEP kits, gloves, masks, etc.

2. Corona Rakshak:

• You can buy a Corona Rakshak plan from either a health insurer or a life insurer.

• Corona Rakshak is a benefit-based plan available only for individuals.

• The policyholder receives an entire sum assured on diagnosis of COVID-19, provided he/she is hospitalised for a minimum consecutive period of 72 hours. The policyholder is free to use the sum insured as per their requirement. 

• The cooling period for Corona Kavach is 15 days, unlike 30 days for normal health insurance.

• Anyone between 18 to 65 years of age can buy this plan. 

• The sum assured can be chosen from Rs 50,000 to Rs 5,00,000.

• The policy is available in short tenures of 3.5 months, 6.5 months, and 9.5 months.

Common Exemptions for the Corona Kavach and Corona Rakshak:

Here are general exemptions of the Corona Kavach and Corona Rakshak policies:

• OPD and daycare procedures

• COVID-19 diagnosis before the policy start date

• COVID-19 test done at a Government unauthorised centre

• Travel to the countries that have been restricted by the Government of India

• Diagnosis or treatment done outside India

However please note that the exemptions and exclusions may vary from insurer to insurer. The policyholder is advised to check the terms and conditions with the insurer before buying the policy.

Conclusion:

Although the number of COVID-19 cases in India is dropping, and state governments have eased lockdown restrictions, we are seeing a rise in cases of the delta variant of coronavirus globally. Some leading health insurance companies have discontinued the specific COVID-19 plans and are offering COVID-19 cover under their comprehensive health insurance plans instead. But with the Government reopening local enterprises and institutions, it has now becomes more essential to protect ourselves with COVID-19 specific health insurance.

Since the comprehensive health insurance plans provide coverage for COVID-19 related treatment, if you already have a comprehensive health insurance policy, you do not need to buy a COVID-19 specific insurance policy. But, if you do not want to use your comprehensive health insurance plan for COVID-19 treatment or do not have any other comprehensive health insurance policy, it is advisable to protect yourself and your family with a COVID-19 specific short-term insurance policy so you get maximum coverage at an affordable premium.

Warm Regards,
Ketki Jadhav
Content Writer

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