Currently, the coronavirus pandemic is affecting all aspects of life, worldwide. The scenario is no different in India. Thousands are contracting this novel virus on a daily basis. Most may or may not have a term policy or a health insurance policy already. It is better to understand whether Covid-19 related hospitalizations/death are covered in the existing policies. In addition, one has to know about Covid-19 specific insurance plans. COVID-19 is an uncharted territory for all policyholders as well as insurance providers. This article tries to answer the queries most have related to insurance and Covid-19.

Does the existing term insurance plan cover death by Covid-19?

Yes, if an individual has an existing term insurance plan, it will cover due to coronavirus. Death by Covid-19 is considered as a ‘general death’ by insurance companies and the nominee will be given the sum assured at the time of settlement as far as all other terms and conditions are met and all the previous premiums have been paid in full. However, the insurance company may ask the nominee to submit relevant medical records or doctor’s prescriptions to support the death claim.

Does the existing health insurance policy cover expenses incurred due to Covid-19 related hospitalizations?

Yes, all existing health insurance policies treat Covid-19 as any other disease and one can opt for cashless hospitalizations in a network hospital or submit claim for reimbursement. Standard pre and post hospitalization expenses are also covered for Covid-19 illness.

Covid-19 specific policies

Health insurance penetration is very low in India and most rely on group policies provided by their employers. This pandemic has forced many to opt for personal policies, mostly family floater plans, as most are worried about rising treatment costs due to Covid-19. To help people shield themselves from the financial impact of the Covid-19 medical expenses, the Insurance Regulatory Development Authority of India (IRDAI) approved two standard Covid-19 Health Insurance plans, namely Corona Kavach and Corona Rakshak. Both the health insurance policies are designed to protect one against Covid-19 treatment costs at an affordable premium.

IRDAI has mandated general and health insurance providers to offer short-term specific health cover for Covid-19 with standard guidelines across the insurance industry.

Corona Kavach

It is a standard indemnity-based policy. Meaning, only the hospital/medical bills will get reimbursed up to the sum insured amount subject to policy terms and conditions.

Policy Type - Family Floater
Sum insured - ₹50,000 to ₹5,00,000
Policy Tenure - 3.5 months, 6.5 months and 9.5 months
Eligibility - Min: 18 years, Max: 65 years
Waiting Period - 15 days from policy effective date
Premium payment - Single
Policy Benefits - Based on Hospitalization

What is covered under the plan?

• Hospitalization expenses
• Treatment for comorbidities
• Road Ambulance
• AYUSH treatment
• Daily cash cover
• Pre-hospitalization cover
• Post-hospitalization cover
• Home Care Treatment Expenses

Why do one need a Corona Kavach Policy?

• Single payment coverage
• Minimal waiting period
• For people without existing health insurance
• Affordable premium

Corona Rakshak

It is a standard fixed benefit plan, where 100% of the sum insured amount is paid when one is tested positive for Covid-19 and require hospitalization of 72 hours or more.

Coverage - ₹50,000 to ₹2,50,000
Sum Insured - 100% lumpsum payment
Consumable Items - PPE Kits, marks, gloves etc covered
Tenure - 3.5 months, 6.5 months and 9.5 months
Waiting Period - 15 days from policy effective date
Eligibility - Min: 18 years, Max: 65 years
Premium - ₹700 onwards