Insurance Cover and COVID 19

Introduction:

Insurance means protection from financial loss which may occur in the future inevitable loss. Insurance policies are taken to mitigate the loss. Insurance can be defined as an arrangement which an insurer undertakes to provide a guaranteed compensation for loss, damage death or illness in return up to the amount of premium paid.

There are generally seven types of insurance are as follows:

1. Life insurance
2. Health insurance
3. Fire insurance
4. Marine insurance
5. Vehicle insurance
6. Property insurance
7. Travel insurance

The insurance policy has played a pivotal role in the global pandemic of Covid-19 which assured people for the future inevitabilities.

Insurance Cover for Covid-19

After the outbreak of Coronavirus health insurance policies customized policies dedicated to the expenses of coronavirus. The coronavirus brought financial instability and economic slowdown in the world. This customised health insurance covers hospitalisation and treatment cost of Covid 19. This insurance covers other diseases, illness and healthcare benefits along with coronavirus. A coronavirus health insurance policy is designed to cover the costs of hospitalization for the policyholder or insured person irrespective of any other illness diagnosed. The insurance policy shall reimburse or compensate for the costs before and after hospitalization costs.

Types of Covid 19 Insurance Policies

These insurance policies have been launched as per the standard guidelines of the Insurance Regulatory and Development Authority of India (IRDAI) guidelines. Following are the types of coronavirus:

1. Corona Kavach Insurance Policy

Corona Kavach Insurance Policy covers all the risks that arise due to coronavirus disease. This plan will be available for 9 months maximum term and 15 days waiting period given separately. This policy also provides cashless facilities across the hospitals allotted for the treatment for the Covid 19 disease.  

• Features of Corona Kavach Plan-

1. This plan will be available on an Individual basis and family floater;
2. Hospitalisation made under treatment of Covid-19 shall be covered;
3. The amount of sum assured shall range from ₹50,000/- to ₹5,00,000/-;
4. It has a Single Premium insurance plan;
5. There are around 30 insurance companies which offer Corona Kavach Policy.

• Hospitalization expenses cover-

If a person is diagnosed with Covid-19 disease then the insurance company shall cover all the expenses done. The settlement can be done cashless.

• Pre and Post hospitalization- 

The insurance companies will cover expenses done before 15 days of hospitalization and 30 days after the insured patient discharged from the hospital. In simple language, it covers expenses of pre and post-hospitalization for 15 days and 30 days respectively.

• Ambulance Expense Cover-

 ₹2000/- as the reimbursement shall be provided as the ambulance charges per hospitalization.

• Home Treatment Cover-

The company will provide expenses incurred if treatment of the Covid-19 disease at home for 14 days on the positive diagnosis of the coronavirus disease.

• Hospital Daily Cash-

There is an optional cover in which a person can get 0.5% of the sum assured as the hospital’s daily cash.

• Single Premium Payment-

In this kind of insurance, the insured is not required to pay an amount again and again. Single payment shall be done. 

• Corona kavach Group Policy-

People who are helping to fight for the Covid-19 disease will get a rebate of 5% like Doctors, health care workers and nurses. It covers people engaged in SMEs, manufacturing, services, migrant workers, MSMEs, logistic sector and many others.

• Age limit-

Age limit for opting this policy is from 18 years to 65 years.

• Leading companies which provides this policy-

1. Aditya Birla Health Insurance Company Ltd.
2. Bajaj Allianz General Insurance Company Ltd.
3. Bharti AXA
4. Cholamandalam
5. HDFC
6. Go Digit

2. Corona Rakshak Policy

Corona Rakshak Policy is a specific health insurance policy for Covid-19 which pays for hospitalization of a minimum 72 hours and more as required for treatment. This policy covers PPE, nebulizers, oximeters, thermal guns, masks, oxygen cylinders, gloves, AYUSH treatment, etc. expenses.

• Key features of policy-

1. It is an individual health insurance plan;
2. Insured person can choose the sum assured at the time of inception of the policy;
3. Insured person can choose the terms of policy as per concerned needs;
4. There is a waiting period of 15 days in the insurance plan;
5. Age limit for the policy is 18 years up to 65 years;
6. Insured persons shall be entitled to receive 100% of sum assured if diagnosed with Covid-19 disease.

• Receive 100% of the sum assured-

The company assures to pay 100% of the sum assured if the person is tested positive for Covid-19 disease. The company needs a hospitalisation continuously for 72 hours for passing the claim. A person can get benefits from ₹50,000/- to ₹2,50,000/-.

• Multiple option to choose the sum assured-

This plan is available for less than one year. The insurance plan has multiple options to choose the sum assured. The options to decide the policy terms are for 105 Days, 195 Days and 285 Days or we can say 3.5 months, 6.5 months, 9.5 months. 15 days of waiting period shall start from the date of inception of the policy.

• Exclusions of the Corona Rakshak Policy-

1. This policy does not provide cover for the treatment of a pre-existing disease;
2. It does not provide reimbursement for the Covid-19 disease if it has been diagnosed at an unauthorized testing centre;
3. The policy shall not reimburse if the insured has travelled to a restricted country;
4. If treatment expense shall not be covered if it is made outside India;
5. If the insured is living with a family member who is detected with Covid-19 or is quarantine for the same then there will be no reimbursement.

• Following are the leading companies providing this policy–

1. Aditya Birla Health Insurance Company Ltd.
2. Bajaj Allianz General Insurance Company Ltd.
3. Bharti AXA
4. Cholamandalam
5. HDFC
6. Go Digit

Expenses Covered under Corona Health Insurance Policy

Following are the costs which are covered under all kinds of Covid-19 Insurance Policy:

• Doctor’s consultation fees;
• The total cost of PPE kit;
• Room, board, nursing care costs in a nursing home or hospitals;
• Intensive Care Unit (ICU) / Cardiac Intensive Care Unit (ICCU) fees;
• Home care;
• Home treatment costs;
• Expenses incurred up to ₹2000/- for ambulance per hospitalization.

Conclusion

The novel coronavirus has dramatically altered life across the globe. It has a huge impact in India with 8.91 Millions of cases. Insurance has become an essential part of survival which helps insured to mitigate the loss which may occur in near future.  In order to address this inevitability of life, basic health insurance extended its scope to cover Covid-19 assurance. The insurance companies are offering two standard Covid-19 health insurance viz. Corona Kavach and Corona Rakshak Policy. There is one pre-pandemic policy which covers all health-related issues is Aarogya Sanjeevani Policy. It covers all the healthcare expenses from ₹3,00,003 to ₹5,00,00.

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References:

• https://www.acko.com/health-insurance/covid-19-health-insurance-corona-kavach-rakshak/

• Corona Rakshak Policy: Benefits, Features and exclusions, wishpolicy.com, ( 12 Sep, 2020), https://www.wishpolicy.com/health-insurance/corona-rakshak-policy/

• Asadulla N, Types of Coronavirus Health Insurance Policies in India, goodreturns.in, (27 Aug, 2020),  https://www.goodreturns.in/personal-finance/insurance/types-of-coronavirus-health-insurance-policies-in-india-1163118.html

• Corona Kavach Policy, wishpolicy.com, ( 24 Jul, 2020), https://www.wishpolicy.com/health-insurance/corona-kavach-policy/