The insurance regulator has asked all general and stand-alone health insurance companies to extend the deadlines for selling and renewing Covid-specific short-term health insurance policies Corona Kavach Policy and Corona Rakshak Health Insurance Plan until as of September 30, 2022. These policies were introduced by the Insurance Regulatory and Development Authority of India (Irdai) in June 2020 amid the Covid-19 pandemic for financial protection in case of medical emergency due to Covid.
At the time of launch, these policies were to be sold until March 2021. However, with the outbreak of the second wave, the period has been extended until September 30, 2021. Experts say the number of active cases of Covid- 19 fell since the peak in January, individuals should opt for a Covid-specific health plan in case they do not have comprehensive health insurance coverage.
Corona Kavach Policy
The Corona Kavach policy, an indemnity-based plan, covers hospitalization, pre-post hospitalization, home treatment costs and Ayush treatment for Covid patients. The minimum sum insured is Rs 50,000 and the maximum is Rs 5 lakh. The duration of the contract is 3.5, 6.5 or 9.5 months and can be renewed according to the option exercised by the policyholder. The waiting period under this policy is only 15 days and the policy is available for individual and family floaters. There is no limit of rooms/ICUs under the policy.
The policy covers hospital expenses such as doctor/surgeon fees, anesthesia, blood, oxygen, operating room fees, medications, diagnostic imaging modalities, etc. It also covers road ambulances subject to a maximum of Rs 2,000 per hospitalization.
The policy covers pre-hospitalization medical expenses incurred for a period of 15 days.
The Corona Rakshak health insurance plan is a benefit-based plan that provides a lump sum payment if the policyholder requires hospitalization for Covid treatment for a minimum continuous period of 72 hours.
The sum insured varies between Rs 50,000 and Rs 2.5 lakh and the period of cover is 3.5 months, 6.6 months and 9.5 months. The policy only provides individual cover and upon payment of 100% of the sum insured, the policy is terminated. The insurer settles or rejects a claim, as the case may be, within 30 days from the date of receipt of the necessary documents.
While both of these policies can provide financial protection to an individual in the event of Covid, it is still ideal to purchase comprehensive cover with a top-up to financially protect the family in the event of a medical emergency.