Keeping in mind rising instances of coronavirus cases, IRDAI has directed insurance companies – life, non-life and standalone health insurers to offer a short term policy especially dedicated for covering the treatment cost of coronavirus.
In its recent circular, IRDAI said, “With an objective of making available insurance protection to various sections of people in the prevailing covid-19 pandemic, it is considered that short term health insurance policies providing coverages specific to covid-19 disease is the need of the hour. Accordingly, all insurers (life, general and health insurers) are allowed to offer COVID – 19 specific short term health insurance policies.”
This would be a one-time policy that comes with validity of 3 to 11 months. In the current form, your clients cannot renew this policy.
Here are other key features of the policy:
- This policy would offer coverage specific to covid-19 disease
- Insurers can offer both indemnity based policy or benefit based policy. While indemnity based health insurance products cover the treatment costs of hospitalization, benefit based policies pay fixed cost to policyholders if policyholder suffers from specific disease
- Insurers can offer option covers to enhance the coverage
- There will be no add-ons
- The policy will come with a waiting period of 15 days i.e. insurance companies will not settle covid-19 claim if policyholder contracts covid-19 disease within 15 days of buying the policy