“Corona Kavach” and ‘Corona Rakshak” health insurance policies are available from 10th July 2020. How to go about it?

COVID-19 has made whole world health conscious. Increasing no of cases, no vaccine till date, different kinds of precautions being advised to prevent ourselves from this decease are adding fear. Due to lockdown since almost 3 months, many people have become vulnerable psychologically, because many are still away from their families, managing their routine all alone under the shadow of this COVID-19!

Well, situation is gloomy physically, psychologically, socially, economically but we are standing strong, helping each other and making way out!

Soon, we will have solutions and things will be better!

Today, we all concerned about our health and wealth. To manage wealth and keep up financial well being, there are many ways, but to keep our health in good shape and be safe from this decease, we are highly concerned.

We, all financial planners, stress upon the fact that, everyone should have ‘Personal Health insurance policy’.

Having adequate amount of personal health insurance is crucial and one must not ignore its importance.

But people delay their decision to purchase health insurance, sometimes they rely on their ‘employer’s group health insurance policy, or many a times they just ‘ignore’ its necessity.

But, due to COVID-19, many people are shocked by amount of hospital bills, ambulance costs, the way COVID-19 affects our body, threat to safety of our family members. This has seen increase in awareness and demand for ‘health insurance policies; specially to cover costs related to COVID-19 treatment’.

Arogya Sanjeevani Policy has been introduced recently from 1st April 2020. It is a ‘standard health insurance policy’. Also, there are other health insurance policies available, from various life and non-life insurance providers.

Apart from these, one new health insurance policy, specifically to cover ‘COVID-19’ will be available from 10th July 2020; as ‘Corona Kavach’ or ‘Corona Rakshak’. This policy will specifically include cost incurred from COVID-19 treatment.

Let’s look at it in detail-

Introduction:

Insurance Regulatory development authority (IRDA) issued guidelines to launch standard COVID-19 health insurance policies named, ‘Corona Kavach’ and ‘Corona Rakshak’.

Corona Kavach’ is a standard indemnity-based policy which will cover any related and pre-existing conditions, along with the treatment for the coronavirus infection or disease with the tenure ranging from 3.5 months to 9.5 months. It will reimburse hospitalisation expenses actually incurred by the policyholder to the extent of the sum insured.

How much is covered under this policy?

Basic and optional covers are available under the policy-

Basic coverage:

  1. COVID -19 hospitalisation expenses for COVID-19 positive patient. Hospitalisation covers-
  2. Room rent charges
  3. Cost for PPE kits, gloves, masks
  4. ICU and ICCU expenses
  5. Ambulance expenses to maximum Rs 2000 per hospitalization
  6. Anaesthesia, Blood , oxygen, operation theatre expenses, ventilator charges, medicines and drugs
  7. Fees of treating doctors and professionals.
  8. Home care treatment expenses for upto 14 days per incident. Here, the medical practitioner should advise to take home treatment in writing. Continuous daily treatment and daily monitoring expenses are covered.
  9. AYUSH Treatment
  10. Oxygen cylinder and nebulizer
  11. Pre-hospitalization expenses related to COVID-19 are covered for upto 15 days
  12. Post-hospitalization expenses incurred after discharge are covered for upto 30 days.

If the insured person wishes to take services from non-network hospital, then he/she needs to take prior approval. It will be granted within 2 hours from the application.

 Its optional to opt for ‘daily cash allowance’ of 0.5% of sum assured per day for which 24 hrs of hospitalization along with admissible claim under the policy. Its available for up to 15 days.

Sum assured and premium under the policy:

This policy is available for a sum assured from Rs 50,000 to Rs 5,00,000. Premium is to be set by respective insurance provider. However, pricing should be on PAN India basis and no geographical/zonal based pricing is allowed.

Tenure of the policy:

Tenure of the policy is 3.5 months, 6.5 months and 9.5 months.

Some important features:

  • Premium payment option is ‘single’ payment as policy tenure is less than a year.
  • A person can opt for Individual/family floater policy
  • Minimum entry age is 18 years and maximum entry age is 65 years
  • Insured person can renew it lifelong.
  • Diagnosis must be from a ‘government authorised testing centre’.
  • Waiting period is 15 days.
  • One can buy multiple policies. If the claim amount exceeds the sum assured under one policy then ,its upto insured, to choose another policy to claim from.
  • There is 5% discount for all health care workers.

Exclusions under the policy:

  • If the diagnosis and testing is done from a non-authorised testing centre.
  • Dietary supplements purchased without prescription.
  • Diagnosis/treatment outside India
  • Any claim for any diagnosis/treatment undertaken prior to policy date.
  • If the insured person travels to any country under travel restriction by India, then the cover under this policy will cease.

‘Corona Rakshak Policy’ is another policy to be available from 10th July 2020. But this is different from ‘corona kavach’.

This is a single premium plan which will pay out 100% sum assured once the insured person is hospitalized due to COVID-19, at least for 72 hrs after testing positive.

The sum insured is from Rs 50,000 to Rs 2,50,000. Tenure of the policy ranges from 105 days, 195 days & 285 days.

This policy will cease once the claim is paid out.

Waiting period is 15 days for this policy as well. Option to pay premium in instalments is not available.

Minimum entry age is 18 years and maximum entry age 65 years. This policy can be opted as Individual cover and not as ‘family floater policy’.

So, should you opt for these policies?

  • Well, if you do not have ‘personal health insurance policy’, then you can think of opting this. But, please remember, this policy covers only COVID-19. We are exposed to many other illnesses and deceases which are equal threat to our well-being.
  • We ‘must’ have ‘comprehensive health insurance policy’ which will do the needful. Many health insurance policies are covering ‘COVID-19’ cost of treatment. So, if you have your existing cover which is sufficient, then need not worry.
  • Earlier you opt for comprehensive cover, better for you. Policies mentioned above will give a boost to purchase health insurance cover, it will make people aware and they will know how health insurance works.
  • While opting for this please take into consideration, entry age, max sum insured, inclusions and exclusions from this policy.

The way COVID-19 is spreading and leaving impact, its better to opt for this policy at least on priority if you are without any health cover!

Health is wealth! To protect your wealth, its important to secure your health!

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