In the wake of coronavirus crisis, the Insurance Regulatory and Development Authority (IRDAI) allowed the insurance companies to offer the policyholders the option to renew, migrate and port two coronavirus specific health insurance policies — Corona Rakshak and Corona Kavach. These policies were launched with tenors of 3.5, 6.5 and 9.5 months, which means that if you had taken the shortest tenor policy, your policy will soon end.
Corona Rakshak is a fixed benefit plan in which if a policyholder tests positive for civid-19 and hospitalised for 3 days, the company will pay 100% of the sum insured. The policy terminates thereafter. For this Policy, the minimum sum insured would be ₹50,000 and the maximum limit is set at ₹2.5 lakh.
Corona Kavach is an indemnity based health insurance plan that will cover all the hospitalisation expenses including pre-post hospitalisation, home care treatment expenses and AYUSH treatment in case the policyholder tests positive for Covid-19. All hospitalisation expenses associated with PPE kits, oxygen, ventilators, and consultation fees are covered under Corona Kavach. The plan is available on a family floater basis for individuals with a minimum entry age of 18 years and maximum of 65 years. The sum insured in Corona Kavach policy ranges from ₹50,000 to ₹5 lakh.
To facilitate the process, the IRDAI has issued the norms on renewability, migration and portability of standard Covid specific products, Corona Kavach and Corona Rakshak.
Renewal
IRDAI passed guidelines saying that any of these policies can be renewed for another period of 3.5, 6.5 and 9.5 months based on the choice by the policyholder. The customer must renew the policy before the expiry of the previous policy. Also, the policyholder is allowed to change the sum insured. The advantage is that in case of renewal, an additional waiting period of 15 days shall not be imposed. These policies are permitted to be renewed till 31st March, 2021.
Migration
If you want wider coverage, you will now have the choice to migrate your policy to other indemnity based policy offered by your insurance company. Moreover, the accrued gains of the waiting period served in the existing policy will continue for covid-19 related treatment in the new policy. The most important benefit of migrating to a comprehensive policy is that policyholders will get adequate coverage for all possible illnesses and ailments including covid-19.
Portability
Policyholders of Corona Kavach policy are allowed to port their insurance cover from one company to another. The waiting period will also be protected while switching companies. However, there is no clear mandate around portability for Corona Rakshak policy. Being a profit based policy, it might not be portable.
Covid-specific policies can be taken in addition to cover high-cost consumables and stay at home treatment that comprehensive plans may not cover in case you get the infection.