In the backdrop of surging coronavirus (Covid-19) cases, the Insurance Regulatory and Development Authority of India (IRDAI) has brought in ‘Corona Kavach’, a Covid Standard Health Policy.

Significantly, it also said that home care treatment expenses should also be covered under Covid policies. All general and standalone health insurers have been directed to mandatorily offer the product on or before July 10, 2020.

Per the guidelines framed by the regulator, general and standalone health insurers will have to mandatorily offer the policy which covers 14 days of expenses incurred for home treatment.

This is in addition to the hospitalisation expenses which will also be covered. The hospitalisation expenses have also been broadbased and includes Intensive Care Unit (ICU) cost, among others.

Pricing

The Authority has allowed the insurers to fix the price of the Covid Standard Health Policy.

It, however, said the insurers should broadly adhere to the IRDAI (Health Insurance) Regulations, 2016 depending on the covers being offered. It should have a specific basic mandatory cover and one optional cover.

The premium payable for the optional cover should be specified separately so as to enable the policyholders to choose and pay as per the need. The tenure of the policy will be made available in three categories including the waiting period.

“It should offer a policy period of three and half months, six and half months and nine and half months,” said the Authority.

Plan

The guidelines for a Covid Standard Benefit Based Health Policy have also been released. This can be offered by all insurers – general, health and life who are transacting health insurance business, it said.

The minimum sum assured will be ₹50,000 with a maximum limit of ₹2.50 lakh. The single premium payment mode will only be allowed.

Insurers’ view

While welcoming the move, some insurers have also sounded cautious on the financial implications of the mandatory Covid-19 policies.

Milind V Kolhe, Chief Underwriting and Reinsurance Officer, Bharti AXA General Insurance, told BusinessLine that his company “welcomes the regulator’s move to bring the Covid insurance products at the time when it is needed the most.”

A top executive of a health insurance company, however, said albeit there is an ‘undeniable’ need for Covid-19 cover, it is like entering water without knowing the depth as the nature of the spread of the pandemic is still not known.

Published on June 27, 2020