The panic caused by the surge in coronavirus cases has induced a feeling of insecurity among people to take health insurance policies. However full-fledged policies can be expensive and will not be beneficial for the purpose, due to the long waiting period.
The steep rise in COVID-19 cases and an increase in the number of customers for a health insurance policy, IRDAI compelled Insurers to come up with special plans for COVID-19. As per the instructions from IRDAI, two standard COVID specific covers were launched -Corona Kavach and Corona Rakshak of which Corona Kavach is a mandatory security plan and Corona Rakshak as an optional benefit-based plan.
Within days of its launch, Corona Kavach has evoked good response from almost all its insurers. It was launched on July 10th and offered by both general and health insurers. This is a COVID specific plan to cover the expenses of COVID-19 positive patients. This plan ensures a maximum amount of 5 lakhs, the term ranges from three and a half to nine and a half months.
Amut Chhabra, Head-Health Insurance, Policybazaar.com, said the response to buy this plan was tremendous, they sold 300-500 policies per day. Fast response is because this policy is very affordable ie, monthly it costs Rs.208 only and most of its customers are young people he added.
The massive interest to buy Corona Kavach is shown by people from those states with maximum COVID-19 cases like Maharashtra, Tamil Nadu, Karnataka, New Delhi.
According to Subramanyam Brahmajosyula, Head, Underwriting and Reinsurance, SBI General Insurance Company, the considerable interest shown towards this policy is due to some features like the family floater option that gives the provision to cover other members of the immediate family and home care treatment expenses. Yet another feature of this policy is the provision to opt for Hospital Daily Cash, where for policies with Rs.5lakh cover the policyholder will be paid a fixed amount of Rs.2500/day. This amount can be utilised to meet the sundry expenses incurred during hospitalisation as well as for any other loss of income.
As some of the health insurance plans did not cover certain hospital expenses, the insured had to bear a sizeable portion of expenses due to this disease. This COVID special policies are very beneficial and sold in range due to its affordability and for the purpose it serves. And it gives a positive response across the country. Corona Kavach can be availed for close family members like spouse, parents in law, parents and dependent children upto 25 years of age.
