IRDAI allows insurers to sell Corona Kavach policy as group product

The Corona Kavach policy will cover hospitalisation expenses for the treatment of Covid-19.
The insurance regulator, IRDAI, has allowed general insurers and health insurers to offer the indemnity based standard Covid cover – Corona Kavach Policy – as a group product.

In fresh guidelines, the regulator said, insurers are allowed to use the standard product name for the group policy after adding the word “group”, provided all terms and conditions as applicable to the standard individual policy remain the same, except the premium rate and specification on operation of group policy.

Each insurer can price the product according to its risk assessment, health portfolio and its claim experience. The idea behind such a move is to increase the scope of the product whereby a large number people subscribe to the product and get covered against the uncertainties.

“The benefit under the product remains the same, but the mode of distribution changes. The idea is to get more number of people get covered at the same time”, said a senior executive at a private sector general insurance company.

Earlier, the regulator had asked all the general insurers to offer two standard Covid products - one indemnity-based and the other benefit-based. Most of the insurers had rolled out the indemnity-based Corona Rakshak policy, while only a handful of insurers chose to offer both the products.

As many as 30 general insurance and health insurance companies got approvals form the regulator to roll out the standard Covid product from July 10. The Corona Kavach policy will cover hospitalisation expenses for the treatment of Covid-19.

All costs relating to room, boarding, nursing, medical consultation, including telemedicine, consumables, such as PPE kits, and intensive care unit will be covered. It will also include the cost of treating co-morbidities, including pre-existing comorbid conditions, along with Covid-19 treatment.

The regulator has not set a ceiling on the cost of room and ICU in the policy. However, a maximum of Rs 2,000 will be covered as far as the expense on the ambulance is concerned.

Home care treatment will also be covered by insurers, in case the insured person avails treatment at home for up to 14 days. It also has an optional cover, which if subscribed, will pay 0.5 per cent of the sum insured per day for every 24 hours of continuous hospitalisation for treatment of Covid-19 following an admissible hospitalisation claim under this policy. The benefit shall be payable for up to 15 days during a policy period.


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