The Insurance Regulatory Development Authority of India (IRDAI) has made it mandatory for general and health insurers to provide the reimbursement-based standard Covid-19 product and the benefit-based product as optional.
Insurance companies will offer ‘Corona Kavach’ and ‘Corona Rakshak’ from Friday.
The regulator has said that despite being a coronavirus-specific policy, the standard indemnity-based Covid-19 policy, ‘Corona Kavach’, will cover the cost of treatment of any co-morbid conditions, including pre-existing conditions, along with the treatment for the coronavirus infection or disease.
Its tenure will range from 3.5 months to 9.5 months.
Under an indemnity plan, a policyholder is reimbursed the hospitalisation expenses actually incurred by the policyholder to the extent of the sum insured.
All life, general and health insurance companies have been encouraged to offer standard benefit-based policy, ‘Corona Rakshak’, which hands out a pre-agreed lump-sum upon diagnosis.
IRDAI has said that the premium under both the products shall be the pan-India basis and no geographic location or zone-based pricing will be allowed.
The minimum sum insured for the Corona Kavach Policy will be Rs 50,000 and the maximum sum insured would be Rs 5 lakh, according to the IRDAI guidelines. There is also a 5% discount for healthcare workers.