Corona Kavach Policy: IRDAI recently ordered insurance companies to offer short-term health plans to cover hospitalization expenses related to COVID-19 treatment. This will help people purchase specific medical coverage to cover hospital costs due to coronavirus. Both the Corona Kavach Policy and the Corona Rakshak Policy are health insurance plans intended for hospital expenses related to Covid-19.
There are at least two benefits of such exclusive COVID-19 health plans:
- The no-claim bonus in existing health insurance plans is not immediately affected and
- It is not necessary to continue paying the premium until life, since these are short-term plans.
The biggest difference is that in the Corona Kavach policy only the hospital bill is reimbursed, since it is a compensation-based plan, but in the Corona Rakshak policy, 100 percent of the insured sum is paid to the policy holder like a benefits-based plan.
But before buying them, know 7 differences between ‘Corona Kavach’ and ‘Corona Rakshak’ policy
Who offers them
The Corona Kavach Policy, the COVID Standard Health Policy, must be mandatorily offered by all general and health insurance companies, and cannot be offered by life insurance companies. To purchase the Corona Rakshak policy, one can approach any insurer, including the life insurance company.
Corona Kavach’s policy will be offered by 29 insurers starting July 10. As for the Corona Rakshak Policy, the standard benefits-based health policy, IRDAI had asked insurers to preferably launch them before July 10, however, it has yet to be seen when they start launching them.
Minimum and maximum
The minimum sum insured for the Corona Kavach policy is Rs 50,000 and the maximum is Rs 5 lakh, while for the Corona Rakshak policy, the minimum sum insured is Rs. 50,000 and the maximum limit will be Rs.2.5 lakh.
In the Corona Kavach Policy, the basic coverage or the insured amount will apply only when there is a hospitalization of a minimum period of 24 hours. Hospital expenses up to the insured amount will be paid as a claim by the insurer, regardless of the days of stay in the hospital. But, in the case of the Corona Rakshak Policy, it requires hospitalization for a continuous minimum period of 72 hours.
Nature of policy
The Corona Kavach Policy will have basic mandatory coverage and optional coverage. The premium payable toward this optional Coverage must be paid separately so that policyholders can choose and pay as needed. Corona Kavach policy base coverage will be offered in the form of compensation, while optional coverage will be made available based on benefits.
In indemnity coverage, the claim is paid based on hospital bills, while in Benefit coverage, the full sum insured is paid to the policyholder. While Corona Kavach is a compensation-based plan that reimburses policyholders based on medical expenses incurred for COVID treatment, Corona Rakshak is a benefit plan that offers fixed compensation to a patient diagnosed with COVID and hospitalized for 72 hours regardless of medical expenses incurred.
Corona Kavach can be purchased both individually and from Family Floater, but Corona Rakshak is offered individually and therefore no Family Floater option is available.
The Corona Kavach Policy gives one the option of adding “Hospital Daily Cash” coverage. Under it, the insurer will pay 0.5 percent of the insured amount per day for every 24 hours of continuous hospitalization for COVID treatment after a claim for hospitalization admissible under this policy. The benefit will be paid up to a maximum of 15 days during a policy period. However, there is no such feature in Corona Rakshak policy, as it is a fully benefit-based plan.
What to do
In both policies, the comorbidity derived from treatment in Covid-19 is also covered, so it is better to maintain high coverage. Being a short plan and the continuous incidence of the virus, it is better to choose a longer term and a high sum assured. But never consider it as a substitute for a regular health insurance plan.
The policy should not be considered as a substitute for comprehensive health coverage. In the event that you do not have basic health coverage, this policy can help to provide specific coverage regarding any medical expenses for the treatment of COVID-19, at an affordable price. In case you already have a health insurance policy, you can buy this policy as a supplemental coverage.