Tag: insurance

Covid19 asymptomatic patients get insurance benefits? Which insurance policy will cover Covid 19 patients with pre-existing medical condition? Will Corona Rakshak Cover a patient of 70 years? Will Corona Kavach cover a patient who has a travel history to Dubai? What if I dont get get hospitalised but because of home quarantine I cant go to office wrestling in salary cut?

There are two new insurance policies launched in India namely Corona Kavach and Corona Rakshak, specific to combat the ongoing coronavirus pandemic. this blog aims to analyse usage of these policies. Do we really need Covid insurance or health insurance is adequate.

The two covid19 policies have different purposes. While Rakshak works like a health cover, covering actual expenses, Kavach works like indemnity cover, incase of Covid19 diagnosis and atleast 3 days of hospitalisation of the policy holder. Many Indian insurance companies have launched the two products. This post is to do a quick analysis on how effective these two policies are to fight coronavirus disease in India. Do we need to buy Covid Kavach or Covid rakshak or relook at our health Insurance policies to understand the benefits we have with our health policies.

What does Covid Kavach offers?

This is short insurance comes in two categories Corona Kavach Individual policy and Corona Kavach for family. As per IRDA direction, Insurance companies (like HDFC Ergo, ICICI Lombard, Universal Sompo, Reliance General, Max Bupa etc) have launched this plan. The Covid Kavach plan is for people between 18 years – 65 years only. A child of 1 day onward can be covered under this plan. 

Tenure – 3.5 months, 6.5 months and 9.5 months only

Cover – 50 Thousand to 5 Lakhs

Coverage – Hospitalisation, home-care cost, Ayush Treatment (Ayurvedic, Homeopathic treatment etc)

Age of policy Holder – 18 – 65 years

General Exclusion of Covid Kavach policies

• Treatment taken for any pre-existing disease
• Travel to any restricted countries
• Diagnosis done at unauthorized testing centres
• Diagnosis/Treatment taken outside India
• Expenses incurred on Day Care & OPD Treatment​​
• Claims related to COVID where the diagnosis prior to policy start date
• Dietary Supplements and Substances purchased without prescription
• ​Expenses done for Unproven Treatments which lacks significant medical documentation

In conclusion, Covid19, which attacks harder to elderly people and people with pre-existing disease, Covid-Kavach may not be useful. Moreover, even the diagnostic cost to determine the disease is not covered under this policy. 

What does Corona Rakshak Policy Offers? 

Under the guidance of IRDA, Insurance companies have launched Corona Rakshak Policy- an indemnity policy which pays out a lumpsum amount on diagnosis of Covid 19 and upon 3 days or 72 hours of continuous hospitalisation. Few Banks or Credit Cards are offering special insurance bundle for their customers.

Coverage – 50k – 5 Lakhs

Premium – Rs. 900 – 6,000 (varies from insurer to insurer)

Tenure – 3.5 months, 6.5 months, 9.5 months (first 15 days is not included)

General Exclusions of Corona Rakshak 

• Treatment taken for any pre-existing disease
• Travel to any restricted countries
• Diagnosis done at unauthorized testing centres
• Diagnosis/Treatment taken outside India

Incase of payout, the policy will cease to exist.

This discussion should be based on the two scenarios 

1. You have a health insurance 
2. You don’t have health insurance

If you have a health insurance policy – 

This is the best possible situation. Independent of your age and pre-existing conditions and family members, the health insurance policy is obligated to cover healthcare expenses as per the policy contract document, though every health insurance cover comes with some differentiation, it is obligated to cover 24 hours hospitalisation, medicine expenses, doctor consultation charges etc. The point here is to look at the waiting period, pre-existing covers, sub-limits and exclusions. If your policy is running for more than 2 years, you have already crossed the many waiting period and pre-existing disease clause.

This pandemic has taught us the importance of life insurance and health insurance. After checking a few insurance policy details of 5 health insurance company, I found that many expenses related to covid related illnesses will be covered by a comprehensive health insurance. 

“Argument arises on the expenses which is not covered under the basic health insurance policies and sublimits of room rent, nurse charges, PPE kit etc”

In a nutshell, a comprehensive health insurance policy will well cover the Covid19 related complexities including co-morbidity, waiting period with a full year coverage, mostly better than short term corona health policy. It will also cover the diagnostic expenses which is not covered in Corona Kavach. You will be covered for the hospitalisation expenses on all health insurance policies. There may be a some additional expenses like PPE its etc, which is not covered under health insurance policies will not need too much attention as country is working hard to increase the supplies and the cost of PPE kits are likely to go down and not up. Given most healthy people between 18-60 years don’t require much of medical attention in case of Corona and Corona Kavach doesn’t cover in case of Pre-existing disease and people with travel history, this is not a compelling option

Corona Rakshak in other hand is a different kind of policy which can be used as it offers a lumpsum Sum Insured benefits in case of 3 days + hospitalization, as it may end up covering some costs of other expenses and cover contingencies. 

A comprehensive health insurance is a must buy, a cover of 10 lakh is ideal. And Corona Rakshak can work like a cushion incase of non-adequate cover or no-health insurance at this point.

In Ideal scenario, would suggest to buy a comprehensive health insurance ( with minimum or no sub-limits, minimum waiting period and maximum coverage on pre-existing conditions) + critical insurance cover and Term life insurance plan. That is best for everyone. This should be for long term, renewed regularly to enjoy a healthy and peaceful life. 

Tip: Check with your Bank and credit card Relationship manager, they have various group plans customized for their customers, offer good coverage and plans