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.
It is true several times people went to stock market but without proper knowledge and skill they are unable to handle the volatility which caused huge losses and they left market.

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:

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.


Policies Available:

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.)      

About the Author:

The Author is Past dealer of DSP-MERYLLYNCH, Castle Securities, Past chairman-Rotry District 3291 Financial Literacy Committee, at present dist co-chair of the committee.


Views expressed herein are not necessarily the views of the organization.