COVID 19 brought the world to a standstill in 2020. Even though lockdowns were enforced in an effort to curb the spread of infection, healthcare systems still were overburdened with cases. Attention was also drawn to the fact that most people lacked health insurance coverage. This gap in insurance saw many exhaust their hard-earned savings while receiving treatment for COVID 19.
In an effort to ensure that everyone can get insured against COVID 19, the IRDAI asked all insurance companies to launch standard, short-term health insurance products for coverage against COVID 19. All insurance providers will have the same names and features for these products as set by the IRDAI. This uniformity will ensure that people can buy coverage with minimal confusion in these difficult times.
The two policies thus launched are the Corona Kavach Policy and Corona Rakshak Policy. Let’s take a quick look at the main differences between these health insurance products from the IRDAI:
- Type of coverage
The Corona Kavach Policy is an indemnity-based policy. It covers pre-hospitalization, hospitalization, and post-hospitalization expenses. It also offers coverage for treatment received at home upon diagnosis of COVID 19 at a government approved diagnostic centre.
The Corona Rakshak Policy is a benefit-based insurance policy in which the policyholder gets paid 100% of the sum insured if they are diagnosed COVID 19 positive and are hospitalized continuously for a minimum duration of 72 hours.
- Who gets covered?
The Corona Kavach Policy can be purchased as an individual plan or as a family floater plan.
The Corona Rakshak Policy can only be opted for as an individual plan.
- Sum insured
The Corona Kavach Policy offers a sum insured starting from Rs 50,000 to Rs 5 lakhs. The coverage increases in multiples of Rs 50,000.
The Corona Rakshak Policy offers sum insured between Rs 50,000 to Rs 2.5 lakhs. The coverage here also may be increased in multiples of Rs 50,000.
- Hospital daily cash
Under the Corona Kavach Policy, the insured person can add the optional benefit of daily hospital cash. This benefit is paid out as 0.5% of the sum insured per day for each 24 hours of completed hospitalization for COVID 19 treatment under a valid claim.
The Corona Rakshak Policy gives a lump sum payout and thus, offers no optional benefits on its coverage.
It is important to note that both the Corona Kavach and Rakshak policies are short-term health insurance plans. They can be each purchased for a coverage term of 3 ½ months, 6 ½ months, and 9 ½ months. These health insurance plans can be availed by anyone between the ages of 18 years and 65 years.
The COVID 19 pandemic shows no indication of slowing down anytime soon. Therefore, it makes sense to buy a short-term health insurance plan that will offer adequate coverage for treatment if you unfortunately test positive for the novel coronavirus. Remember that both the Corona Kavach Policy and the Corona Rakshak Policy have a waiting period of 15 days before coverage begins. Therefore, keep yourself insured from today. Also, make sure to follow social distancing and stay safe!