Irdai asks insurers not to stop offering or renewing covid-specific policies
Premium- In the wake of rising infection rates due to the second wave of the Covid-19, the insurable public requires appropriate health insurance coverage, and it is not correct to deny such coverage to the customers in this crucial time, said the Irdai
Short-term covid-specific health policies (Corona Kavach and Corona Rakshak) launched by the Insurance Regulatory and Development Authority of India (Irdai) last year are set for renewal for many policyholders this year. However, they are not able to do so as some of the insurers are denying to renew their policies. Currently, you can buy, renew such policies until 30 September 2021.
"In the wake of rising infection rates due to the second wave of the Covid-19, the insurable public requires appropriate health insurance coverage, and it is not correct to deny such coverage to the customers in this crucial time, said the Irdai press release issued on 10 May.
The Irdai further advised all insurers to ensure that wherever corona specific standard products have been filed and approved by the regulator, the same should be offered to the customers according to the insurer’s underwriting policy. Similarly, where the underlying corona specific product enables the insured to renew the policy, insurers have to renew such policies subject to the underwriting policy of respective insurers.
On the directions of the regulator, last year all health insurers came up with covid-specific health policies. Where Corona Kavach or covid-specific indemnity health policy provide coverage for hospitalisation expenses incurred by the individual for the treatment of covid on a positive diagnosis of covid-19. One can buy this policy with a maximum sum insured of ₹5 lakh. On the other hand, Corona Rakshak or covid-specific benefit-based health policy provides a benefit equal to 100% sum insured, that is, it offers a 100% lump sum payout if you get hospitalisation on a positive diagnosis of covid-19. Such policy can be bought for a maximum sum insured of ₹2.5 lakh. The period of coverage for both the policies is for 3.5 months, 6.6 months and 9.5 months.
