With India facing a second wave of Coronavirus, the Insurance Regulatory and Development Authority of India (IRDAI) has extended the timeline for the sale of the short-term covid specific policies — Corona Kavach and Corona Rakshak.
The timeline has been extended till September 30, 2021.
It is estimated that the insurance industry has so far settled claims worth Rs 10,000 crore arising out of the coronavirus pandemic with around Rs 700 crore being from Covid specific covers.
Corona Kavach is an indemnity-type policy that covers hospitalisation expenses including hospital room rent, nursing expenses, surgery costs, specialist expenses and home care treatment, AYUSH treatment in case one tests positive for Covid-19.
The Corona Rakshak policy is a benefit plan that offers a lump sum pay-out that can be used to meet the medical needs arising from Covid-19. The plan offers coverage on an individual basis with sum insured options ranging from Rs. 50,000 to Rs. 2.5 lakh, in the multiples of 50,000. The policies have a waiting period of 15 days. The payment is made only on hospitalisation for a minimum continuous period of 72 hours following positive diagnosis for COVID.
The regulator also stated that the policy guidelines have not changed. All other terms and conditions are still in effect as stated in the guidelines.
These short-term Covid specific policies are currently available for three-and-a-half month, six-and-a-half-month and nine-and-a-half-month duration (105 days, 195 days and 285 days respectively).
Earlier this month, IRDAI had asked insurance companies to also cover the hospitalization expenses following adverse reaction to COVID-19 vaccination. While the cost of vaccination will not be included, any hospitalization for over 24 hours will be covered under comprehensive health insurance policies.
“It is clarified that in the unlikely event of hospitalization following adverse reaction to COVID-19 vaccination, hospitalization is covered under the health insurance policies subject to the specific terms and conditions of the policy,” said IRDAI in its circular issued on March 18, 2021.
