IRDAI has directed insurance companies – life, non-life and standalone health insurers to offer a short term policy especially dedicated to covering the treatment cost of coronavirus from July 10, 2020.
With this, all the insurance companies be they life, health or non-life, can offer Corona Rakshak Policy which is a benefit based policy that pays fixed cost to a policyholder if he suffers from coronavirus.
Further, non-life and standalone health insurers can additionally offer Corona Kavach Policy. Kavach Policy is an indemnity based health insurance product that will cover the treatment cost of hospitalization.
Let us look at the key feature of both the policies:
Corona Rakshak Policy
- Plain vanilla product with no specific terms and condition i.e. a policyholder gets fixed cost if he suffers from coronavirus
- Only individual plan is available. There will be no family floater plan
- Policyholders can buy Corona Rakshak Policy with sum insured between Rs.50,000 and Rs.2.50 lakh. Policy will be terminated on payment of sum insured
- Policy tenure can be 105 days, 195 days and 285 days
- Only single premium payment mode is available
- Individuals in the age group between 18 and 65 years are eligible to buy this policy
- Policy cannot be renewed
- Uniform premium irrespective of geographical location
Corona Kavach Policy
- Plain vanilla product with no add on and specific terms and condition. Policyholder gets expenses incurred on hospitalization
- Family floater plan is available. Family includes legally wedded spouse, parents, parents in law and dependent children
- Sum insured between Rs.50000 and Rs.5 lakh
- Policy term will be 105 days, 195 days and 285 days
- Single premium policy with no option of renewal
- Individuals in the age group of 18-65 are eligible to buy this policy. Dependent children should be in the age group of 1 day – 25 years
- The policy covers comorbid conditions including pre-existing diseases i.e. disease that occurs due to primary disease (coronavirus in this case)
Remember that both the policies can be distributed across distribution channels including point of sales representatives.