The article envisages about, IRDAI norms related to Insurance Surveyors and Loss Assessors. The...
Amidst the growing implications of the Covid-19 pandemic, the IRDAI has issued guidelines directing all the general insurance companies and health insurance companies in India to provide COVID Standard Health Insurance policy to people. The policies are named ‘Corona Kavach’ and ‘Corona Rakshak’ policies, which must be issued on or before July 10, 2020.
The standard product offered by the IRDAI that is the Corona Rakshak policy is a standard benefit based policy. Corona Kavach policy is a standard health policy that shall be provided on an indemnity basis.
The corona Rakshak policy shall offer coverage on a benefits basis, whereas the basic cover of Corona Kavach shall be provided as per the compensation principle.
It is a corona virus-specific product that covers basic health insurance requirements pertaining to the Covid-19 treatment. It is a standard medical insurance product with common policy wordings across the health insurance sector. It is a policy with no deductibles.
The following guidelines were issued by the IRDAI:
The main features of these health insurance plans are as follows:
Expenses of hospitalization
The policy shall cover the hospitalization expenses incurred by the policyholder for the treatment of COVID-19 in a government authorized diagnostic center. It shall cover the following medical expenses:
Expenses of Home Care Treatment
The insurance provider will be covering the cost of the treatment for Covid at home up to 14 days provided:
Expenses of Pre and Post Hospitalization
The policy will be covering expenses accruing from pre-hospitalization incurred 15 days prior to the date of hospitalization or home treatment, including the diagnosis costs as per the admissible claim. It shall also cover post-hospitalization expenses of 30 days.
The expenses of Ayush hospitalization according to the IRDAI Health Insurance Regulations, 2016, systems of medicine for the COVID treatment on a positive diagnosis of COVID in a government authorized diagnostic centre will be covered up to the sum insured without any sub-limits.
During the term of the policy, the insurer is required to pay 0.5% of the sum insured amount on a daily basis for hospitalization needed for 24 hours of treatment of Covid up to 15 days maximum.
Since the product features and terms are standardized, premium, and cashless hospital network will form a key factor once the insurers commence with the products. The policy may prove to be beneficial for those who are looking for less expensive covers. Policyholders can also be benefited as the cost of the PPE, masks, gloves, and home health care is covered under the plan.
These policies are attractive and provide a good beginning for people to select health insurance and may encourage them to choose for a holistic health insurance cover later on. It is an effective policy to save on your savings, which may otherwise be affected due to the implications of the covid-19 pandemic.
Also, read: Covid-19 Impact on Heath and Life Insurance