IRDA’s Launches COVID 19 Policies – Corona Kavach & Rakshak; Should You Buy One?

COVID 19 is highly contagious, and the whole family is at risk, given any of the members gets in contact with the virus. The Insurance Regular has directed all insurance companies to launch exclusive COVID 19 Standard Health Insurance Policies: Corona Kawach and Corona Rakshak.

Reportedly major insurers such as Star Health, IFFCO Tokio, and Universal Sompo are offering both Corona Kavach and Corona Rakshak while United India, National Insurance, Bajaj Allianz, Star Health, Oriental, Max Bupa and many more have launched Corona Kavach.

Corona Rakshak is the standard benefit-based health policy wherein 100 percent of the sum insured is paid to the policyholder for hospitalization meant for Covid-19 treatment. This is an individual policy and not a Family Floater plan. Currently, the Rakshak cover offers insurance between Rs 50,000 to Rs 2.5 Lakh.

Corona Kavach is an indemnity-based plan where the hospital bill gets reimbursed. The sums insured ranges from Rs 50,000 to Rs 5 Lakh.

Shared below is the run-through of both the COVID specific insurance plans. We have also drawn a comparison between the two so that you can understand the difference between Corona Kavach and Corona Rakshak plans and make a wise decision regarding your insurance needs.

Also Read: List of IRDAI’s Rules for COVID Health Insurance, Policy Renewal, Portability & Senior Citizens

Corona Kavach and Corona Rakshak: A Comparison:

On July 10, the Insurance Regulatory and Development Authority released a press statement issuing guidelines for insurance companies to service Corona specific indemnity plans to the general public. The statement said:

In view of the COVID 19 pandemic, the Authority has designed a standard COVID specific product addressing basic health insurance needs of insuring public with common policy wordings across the industry. The Authority has mandated general and health insurers to offer this indemnity based Individual COVID Standard Health Policy called “Corona Kavach.”

The regulator has identified 30 general and health insurance companies for the COVID specific insurance policies. The list of the insurers and their contact details are shared below for your convenience:

Corona Kavach: Policy highlights-

True to its name, CORONA Kavach offers family protection up to Rs 5 Lakh with an affordable one-time premium payment. The premiums can range approximately from Rs 600 to Rs 5000 across insurers. The maximum base cover is Rs 5-lakh, and the maximum policy term is 9.5 months.

The policy is cheaper than the Arogya Sanjeevani health policy. Though the Arogya Sanjeevani is a standard health insurance policy with wider coverage scope, Corona Kavach is a niche product.

There are no sub-limits on hospital room rent and offers coverage for the actual cost of treatment up to the sum insured, including both hospitalisation as well as home care treatment. All co-morbidities or pre-existing co-morbidities – triggered by COVID-19 are also covered alongside treatment for COVID 19. It comes with an initial waiting period of 15 days.

Corona Rakshak

Corona Rakshak entitles the entire sum insured to the policyholder in case of 72 hours of hospitalisation for COVID-19 treatment. The policyholder gets the sum assured if they are diagnosed COVID 19 positive.

This can come extremely handy when one is prescribed home isolation. You get a claim for all types of expenses on medicine, treatment, or nursing. Thus, Corona Rakshak is a recommended health plan for anyone who is not adequately insured and needs an affordable add-on COVID specific insurance plan. Since it is an individual policy, it is an affordable cover till Rs 2.5 Lakhs.

Do you need COVID Specific Policy?

With the launch of newer COVID specific plans, it is relevant to ponder if you need a COVID specific plan for self and family. You need Corona Kavach/ Rakshak if:

• You do not already have a comprehensive cover plan.
• You are not adequately covered.
• You cannot afford a high premium & looking for an affordable cover for a pandemic.
• You do not have a health insurance plan at all.

Also Read: COVID 19 Health and Life Insurance Plans in India 2020