Insurers within the nation have covered round 60 lakh lives under the 2 covid-19-specific insurance policies, Corona Kavach and Corona Rakshak, Subhash Chandra Khuntia, chairman of the Insurance Regulatory and Development Authority of India (Irdai) mentioned on Thursday.
He was addressing the twenty second Insurance and Pensions Summit organized by the Confederation of Indian Industry (CII).
Corona Kavach is an ordinary indemnity coverage supplied by all basic and health insurance coverage corporations, whereas Corona Rakshak is a fixed-benefit coverage, which pays 100% of the sum assured on constructive analysis for covid-19.
Since their inception, insurers have offered round 28 lakh Corona Kavach insurance policies with a complete sum insured of ₹1.02 lakh crore and 32 lakh Rakshak insurance policies with a complete sum assured of ₹1.1 lakh crore.
While Kavach has a cap of ₹5 lakh on the sum insured, Rakshak has a cap of ₹2.5 lakh. Both these insurance policies had been launched on 10 July 2020.
“Kavach and Rakshak are each small-ticket insurance policies as a result of they’re short-duration merchandise. Premiums too usually are under ₹1,000, so I’m of the view that 60 lakh isn’t a really large quantity given the nation’s inhabitants. These insurance policies will not be enormous income churners for insurers, however they may assist corporations in reaching out to clients to allow them to cross-sell common health insurance policies as soon as the covid-19-specific insurance policies lapse,” mentioned Naval Goel, founder and CEO of PolicyX, a web-based insurance coverage aggregator.
In his inaugural handle on the convention, Khuntia additionally mentioned that the regulator is working with the trade on growing an ordinary time period insurance coverage coverage. (*60*) now, the regulator had mandated two customary insurance policies—Arogya Sanjeevani and Corona Kavach coverage.
Corona Rakshak too is an ordinary product however insurers will not be mandated to supply this. Standard insurance policies have the identical options and construction however the pricing is left to the insurers’ discretion.
“Currently, even in time period plans, insurers are including loads of options, so in lots of circumstances, it’s not a plain vanilla product anymore. The numerous riders could make it advanced for policyholders to know the product which is why I believe there’s a case for the life insurance coverage trade to provide you with an ordinary time period insurance coverage coverage,” mentioned Goel.