IRDAI has given a choice to insurance companies to renew Covid specific standard policies – Corona Kavach and Corona Rakshak. Both these policies were short term in nature with a maximum coverage tenure of nine and a half months.
While Corona Rakshak is a benefit-based policy that pays fixed cost to a policyholder if a policyholder suffers from coronavirus, Kavach Policy is an indemnity based health insurance product that covers the treatment cost of hospitalization.
With this, insurance companies can decide if they want to renew these policies. However, there will be no grace period in these policies. This indicates policyholders will have to renew such policies before its expiry.
In addition, insurance companies can revise sum assured on renewal. Further, IRDAI has also enabled portability in these policies which will allow policyholders to change insurance companies at the time of renewing Covid specific policies.
In another development, IRDAI has enabled portability in group health insurance policies. With this, members of group health insurance policies are allowed to change health insurance companies even at individual level.