Difference Between Corona Kavach and Corona Rakshak Health Insurance

COVID-19 Health Insurance Plans: The Insurance Regulatory and Development Authority of India recently made it mandatory for insurance companies to offer COVID-19 specific short-term health insurance plans namely Corona Kavach Plan and Corona Rakshak Plan. These two plans are meant to insure policyholders against the healthcare cost incurred due to the pandemic causing coronavirus disease.

What is the difference between Corona Kavach Policy and Corona Rakshak Policy?

Although both corona kavach and corona rakshak are COVID-19 specific health insurance plans, they are quite different from each other. Let’s read how.

Basis

Corona Kavach Health Plan

Corona Rakshak Health Plan

Type of Plan

Indemnity-based

Fixed Benefit

Offered By

Health and General Insurance companies

All insurance companies

Sum Insured Limits

Rs. 50,000 - Rs. 5,00,000

Rs. 50,000 - Rs. 2,50,000

Minimum Hospitalisation Required

24 hours

72 hours

Family Plan Option

Available 

Not Available

Hospital Daily Cash Cover

Available 

Not Available

Type of Health Insurance Plan

First of all, Corona Kavach is an indemnity-based plan whereas Corona Rakshak is a fixed benefit-based plan. Thus, a Corona Kavach plan provides reimbursement for COVID-19 hospitalisation expenses to the extent of sum insured upon hospitalisation for at least 24 hours. Whereas, under a Corona Rakshak plan, an insurance company pays the sum assured to the policyholder after he/she gets diagnosed with coronavirus and hospitalised for at least 72 hours.

Availability

Only health and general insurance companies are allowed to sell Corona Kavach Plans, whereas Corona Rakshak plans can be offered by all insurance companies including life insurance companies.

Maximum Sum Insured

The amount of minimum sum insured under both Corona Kavach and Corona Rakshak is the same - Rs. 50,000. However, the maximum sum insured allowed under Corona Kavach is Rs. 5 lakh and under Corona Rakshak is Rs. 2.5 lakh.

Minimum Hospitalisation Period

Under a Corona Kavach plan, the policyholder is eligible for the insured upon hospitalisation for a minimum of 24 hours and under a Corona Rakshak plan, upon hospitalisation for at least 72 hours. 

Availability of Family Plan

A Corona Kavach plan is available on individual as well as on family floater basis, whereas, a Corona Rakshak plan is only available on an individual basis.

Availability of Optional Cover

Under Corona Kavach plans, policyholders can opt for an optional cover called ‘Hospital Daily Cash’ cover, however, this cover is not available under Corona Rakshak plan. Under this optional cover, the insurance company pays 0.5% of the sum insured per day for every 24 hours of continuous hospitalization for a maximum of 15 days.

Note: Both these policies should not be followed as a substitute for a comprehensive health cover.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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