As COVID-19 cases mount unabated in India, Financial Advisers say we need a health insurance plan for our family more than ever. As mandated by insurance regulator, IRDA, several general and health insurers have now come up with standard COVID specific indemnity plan, Corona Kavach, and an optional benefit based plan Corona Rakshak.
Corona Kavach is an indemnity policy that requires onetime payment for coverage of up 9.5 months. This plan is available for individuals and families. It will offer a sum insured of up to Rs. 5 lakh for hospitalisation expenses related to Covid-19. The policy will cover consumables such as PPE kit. The Corona Kavach can’t replace the normal mediclaim policy. But if someone is not currently covered by health insurance or if they are not adequately covered, it would make a lot of sense to consider buying this specific protection.
Corona Kavach Vs. Standard Mediclaim:
|1.||Most COVID insurance plans offered by insurers will have near identical benefits because these were mandated by the IRDA.|
|2.||If you do not have a health insurance policy, the waiting period in a standard policy is 30 days. This means that if you buy a policy tomorrow, and you contract the Covid-19 within the next month, the policy will not cover the costs for treatment.|
|3.||The Corona Kavach, on the other hand, has a waiting period of 15 days. It also covers pre-hospitalisation treatment for 15 days and post-hospitalisation treatment costs for 30 days.|
|4.||All Corona Kavach policies cover the cost of treatment at home for up to 14 days per the incident, which in the normal course would require care and treatment at a hospital but is provided at home.|
|5.||The Corona Kavach covers the cost of personal protective equipment or PPEs and other consumables, which standard policies don’t cover.|
|6.||These insurance policies also cover comorbidity.|
The policies offered by insurance companies are similar given that most of the benefits are mandated by the IRDA. These offer a minimum cover of Rs. 50,000 and in multiples of that amount till Rs. 5 lakh. It covers individuals for 3.5months, 6.5 months and 9.5 months.
What to keep in Mind:
You cannot yet buy Corona Kavach directly from the website of an insurance company. Some insurance aggregators have started offering the product, while insurance companies are offering a call-in facility to buy the policy.
Also, with Covid-19 cases rising, especially in metropolitan and tier 1 cities, the number of hospital beds available is limited. As a result, even if you have a health policy, or buy a Corona Kavach, you may not get admitted to a hospital covered by your policy. That will prevent cashless hospitalisation. In that case, patients may have to file for reimbursement after being discharged
Cost of such treatment to be agreed upon are as under:
|Sum Insured (Rs.):||Less Rs. 10 Lacs||Rs.10 Lacs to Rs.25 Lacs||More Rs.25 Lacs|
|No. of days||not exceeding 15 Days||not exceeding 15 Days||not exceeding 15 Days|
|Per day cost for Home Care Treatment||Up to Rs.666||Up to Rs.1000||Up to Rs.1333|
|Total cost for Home Care Treatment||Up to Rs.10,000||Up to Rs.15,000||Up to Rs.20,000|
|Accommodation cost to be permitted||Up to Rs.10,000||Up to Rs.15,000||Up to Rs.20,000|
|Per day cost (adding accommodation expense) not to exceed for treatment at Makeshift or temporary hospitals, permitted by Government||Up to Rs.1333||Up to Rs.2000||Up to Rs.2666|
|Total cost (adding accommodation expense) to be allowed for treatment at Makeshift or temporary hospitals, permitted by Government||Up to Rs.20,000||Up to Rs.30,000||Up to Rs.40,000|
Other Key Points:
Eligibility: Adults: 18 years to 65 years; Dependent children 1day to 25 years.
|1.||Hospitalization Cover: Hospitalizaion expenses incurred on treatment of Covid-19 (including the treatment for comorbid conditions) comprising of Room, Boarding, Nursing Expenses, Consultant, Specialist Fees, Anesthesia, Blood, Oxygen, PPE kit, gloves, mask and such similar other expenses.|
|3.||Home Care Treatment Expenses up to 14 days|
Premium rates for a 35 years old man for a Rs. 5 lakh Plan:
Period 3.5 months – Rs. 552/- – Rs. 1923/-
Period 6.5 months – Rs. 695 – Rs. 3678/-
Period 9.5 months – Rs. 839/- – Rs. 5370/-
Migration and Portability:
Payments of premium by any mode other than cash for this insurance is eligible for relief under Section 80D of the Income Tax Act 1961.