The insurance regulator has designed two standardised Covid-19 health insurance policies which all non-life and health insurance companies have been told to mandatorily offer from July 10. "These policies will cater to people who now don't have a holistic health insurance policy and are looking to cover themselves against COVID-19", Tapan Singhel, managing director and CEO, Bajaj Allianz General Insurance, told NDTV.
On IRDAI issuing the guideline, Head - Retail Health Underwriting of Bajaj Allianz General Insurance Rashmi Nandargi said these standard policies specific to Covid-19 are a welcome move considering the current situation where people are anxious about the COVID-19 treatment costs. Notably, an indemnity plan reimburses hospitalisation expenses actually incurred by the policyholder to the extent of the sum insured.
Corona Kavach: This is a standard policy which will cover the cost of treatment of any co-morbid conditions, including pre-existing conditions, along with the treatment for COVID-19.
The mode of payment would be single premium, the guidelines said, adding "the premium under this product should be pan India basis and no geographic location/zone based pricing is allowed". Customer-centricity is the main theme of these products during unprecedented times.
"The hallmark feature is the uniformity of the policy wordings across the market". Claims management will be an important aspect of these products and insurers are working closely with the General Insurance Council to bring some rationalization in the treatment costs.
Starting 10 July, you will be able to purchase standardised short-term health insurance policies for COVID-19 with uniform features, terms and conditions, from any insurer of your choice.
It would be a single premium policy without lifelong renewability benefits. However, for Corona Rakshak Policy, the minimum sum insured would be Rs 50,000 and the maximum limit is set at Rs 2.5 lakh. One is a regular indemnity policy covering the disease with the tenure ranging from 3.5 months to 9.5 months, and the other is an optional standard benefit cover, which pays out a fixed amount. They have been asked to cover the expenses for hospitalisation, home care treatment and Aayush treatment, as well as charges towards pre- and post-hospitalisation in both the policies. It will also be purchased as a family floater to include spouse, dependent children (up to 25 years), parents and parents-in-law.
However, the sum insured under this plan is lower and caps at a maximum of Rs. 2.5 lakh. Cashless or reimbursement facility are offered under homecare expenses subject to claim settlement policy disclosed in the website of the Insurer.
Both policies also have to be sold by the same aforementioned names.
Those between 18 and 65 years of age can buy this product. The option to pay premiums in instalments is also not available for these products. The benefit shall be payable for a maximum of up to 15 days during a policy period in respect of every insured person.