Are COVID-specific policies a good option as IRDA extends validity?

Accordingly, the Corona Kavach policy (introduced as a COVID standard indemnity-based health policy) and Corona Rakshak policies (introduced as a COVID standard benefit-based health policy) will also be offered and accepted by all insurers by 31 March 2022. renewal is allowed.

Currently, the short-term COVID-specific health policies issued under these guidelines are valid till the end of the current month, 30 September. Short-term COVID-specific health policies are offered for tenures of 105 days, 195 days and 285 days respectively.

In June 2020, the regulator had asked insurers to come up with need-based policies covering the cost of treatment of coronavirus infection, said Sanjeev Bajaj, joint chairman and managing director, Bajaj Capital. At that time, all insurers (life-general and health insurance companies) were allowed to offer COVID-specific, short-term health insurance Policies subject to the guidelines of short-term COVID-specific health insurance policies.

Bajaj further said, “Such short-term health policies were to be issued for a period of less than one year, and the guidelines were valid till September 30. Now, the regulator has further extended the deadline, and all insurers have to be short-term till March 31, 2022. Permission to offer and renew COVID-specific health insurance policies.

Weigh your decision: COVID-specific insurance policies are a good example of standardized products introduced in the wake of the pandemic to protect the public from a specific infection.

However, comprehensive health insurance policies also provide coverage for COVID-19 infection and provide full health support for other medical needs. Therefore, if a person already has a comprehensive health policy, he may not need a separate COVID-19 specific plan.

Naval Goel, Chief Executive Officer, PolicyX.com said that while COVID-19 specific policies are designed for shorter duration and cover the cost for COVID-19 hospitalisation, comprehensive health plans cover hospitalization or Hospitalization based on home remedies is also included. Policies that expand the bandwidth of coverage.

“Additionally, comprehensive health insurance policies now come with additional riders that allow coverage of non-payable items like PPE kits, gloves and masks. This can lead to the formulation of comprehensive policies designed to deal with the treatment of Kovid-19.

However, suppose an individual does not wish to use comprehensive health insurance policies for COVID-19 treatment, they may opt for such standard, short-term, COVID-specific policies as they affect the sum insured of their comprehensive policies. will not do. . The COVID-19 Standardized Policy will cover the cost of COVID-19 related treatment.

Adding to this, Atur Thakkar, Co-Founder and Director, Alliance Insurance Brokers said that COVID-specific policies offer higher benefits at lower cost premiums.

“If one does not have a comprehensive policy, one should go for these short-term, COVID-specific policies,” he said.