COVID-19 Health Insurance Policy

Pandemic declared coronavirus (COVID-19) has impacted the lives of many across the globe. In India, the total number of people affected by the disease stands at 2.99 Crore, out of which 2.88 Crore have recovered and 3.87 Lakh have lost their lives to this deadly disease (as of June 20, 2021). Keeping into consideration the number of cases going up, the Insurance Regulatory and Development Authority in India (IRDAI) had issued a circular asking the insurance providers to come up with health insurance plans to offer protective coverage for expenses related to the coronavirus disease.

Let us learn more about coronavirus and coronavirus insurance policy to analyze its need in the current times.

Novel coronavirus (COVID-19) is a group of viruses that attack the immune system of a person that results in diseases as mild as the common cold to as severe as Severe Acute Respiratory Syndrome (SARS). It is an infectious disease that originated in China’s Wuhan in late December 2019. COVID-19 is a highly contagious virus that shows symptoms similar to those of regular flu. These include fever, dry cough, tiredness, and sore throat.

However, the disease affects different people in different ways. It has been fatal for people aged above 60 years and those with pre-medical conditions. As stated above, it is a new strain of the virus that does not have any cure as of now.

What is Coronavirus Insurance Policy?

Covid-19 health insurance policy is a customised insurance policy aimed at covering hospitalisation, pre-hospitalisation and post-hospitalisation expenses, and other medical expenses arising due to the treatment of COVID-19. Almost all health insurance policies now offer cover for the treatment of coronavirus in India. The cover is available from day 1 after the insured is tested coronavirus positive. Since COVID-19 is a new disease, it does not fall under the category of pre-existing diseases.

How Does The Coronavirus Spread?

Coronavirus is a respiratory virus that primarily spreads through saliva droplets when the infected person sneezes or coughs. It can even spread through discharge from the nose. To avoid the spread of the virus, you must clean your hands frequently with soap and water or an alcohol-based hand sanitizer. Also, you must use a disinfectant to clean commonly used surfaces like tables, door knobs, handles, drawers, etc., to avoid the spread of germs.

Role of Coronavirus (COVID-19) Health Insurance Policy

In this ongoing pandemic situation, where coronavirus (COVID-19) is not looking to go away soon, having coronavirus (COVID-19) insurance can be highly beneficial. This is because a specially designed coronavirus health insurance plan covers you against the hefty expenses associated with the treatment of this highly infectious disease. A COVID-19 health insurance policy covers you for various in-patient hospitalisation expenses, pre-hospitalisation and post-hospitalisation expenses, thereby letting you focus entirely on your quick recovery. So, if you do not want to use your entire savings on paying for hospital bills, then you must avoid procrastinating and buy adequate health insurance cover for yourself and your family at the earliest.

However, it is important to note that COVID-19 health insurance policy do not cover during the isolation period when the treatment is not required.

Coronavirus (COVID-19) Health Insurance Plans in India

If you are looking for health insurance with comprehensive coverage, then you can purchase a standard health insurance policy that covers all medical expenses including those related to the treatment of novel coronavirus. One can also choose from two short-term health insurance policies recently launched by the IRDA that are designed to cover coronavirus treatment expenses only.

Types of Coronavirus Health Insurance Policy in India

Below are two types of corona health insurance plans in India.

1. Corona Kavach Policy for COVID 19

Corona Kavach Policy is a single premium standard health insurance policy that covers treatment expenses related to COVID-19. It is an indemnity-based health insurance policy that covers both individuals as well as families at an affordable premium. You can cover self, dependent children, parents, and parents in law under this policy for a period of 3.5 months (105 days), 6.5 months (195 days), and 9.5 months (285 days). Offered by both private and general insurers, the policy offers cover against AYUSH treatment expenses, homecare treatment expenses, pre-hospitalisation expenses, post-hospitalisation expenses, and road ambulance expenses. The best thing about the policy is that it comes with a short waiting period of 15 days, which means that you can start availing of policy benefits soon. Also, you can opt for a daily cash benefit by paying an extra premium.

2. Corona Rakshak Policy for COVID 19

Corona Rakshak Policy is a standard health insurance policy especially designed to cover treatment expenses related to COVID-19 is Corona Rakshak Policy. Unlike Corona Kavach Policy, it is a benefit based health insurance policy that pays the insured a lump sum benefit equal to 100% of the sum insured if he/she is tested positive for COVID-19. The policy offers coverage on an individual basis for sum insured options ranging between Rs. 50,000 and Rs. 2.5 lakh in the multiples of Rs. 50,000.

The policy can be purchased by people aged between 18 years and 65 years. Available for short policy terms of 3.5 months, 6.5 months, and 9.5 months, the policy gets terminated upon the payment of benefit. But the insured can avail of policy benefits only he/she is tested COVID-19 positive at a government recognised center and gets hospitalised for at least 72 hours continuously. The policy comes with a short waiting period of 15 days but does not offer lifetime renewability benefit, it being a benefits based policy.

Corona Kavach Policy Vs Corona Rakshak Policy

As discussed, Corona Kavach Policy protects the insured from healthcare expenses related to hospitalisation and treatment in case the policyholder catches COVID-19 infection. The policy covers most of the hospitalisation expenses including treatment cost, medication, room rent, nursing, etc. But this COVID-19 insurance policy only takes care of the treatment cost and nothing else will be covered.

Whereas Corona Rakshak Policy is a benefit-based policy that offers 100% of the sum insured irrespective of medical expenses incurred. The policy is recommended if you are the breadwinner in your house.

Getting Covered Under Corona Medical Insurance alongside a Basic Health Insurance Policy

If you already have a health insurance policy that protects you from expenses incurred on room rent in case of hospitalisation, then you must go for Corona Rakshak Policy. If you do not already have a health insurance policy, then you can buy Corona Kavach Policy as it protects you against room rent and other expenses.

In case you are the sole earner in your family, then buying a Corona Rakshak Policy is recommended. It is advised that you buy covid insurance cover for at least 125% of your monthly salary. But make sure that this amount does not affect your financial position without any financial burden. So, if income replacement is your sole priority, then you must opt for this policy.

You may also purchase Corona Kavach Policy if you already have a health insurance cover. But the claim settlement may differ with different policies laid out. So, it comes down to how much premium you are willing to pay and which policy you chose to buy.

Health Insurance Companies Offering Coronavirus Health Insurance Policy in India

Tabulated below are health insurance companies that offer Corona Kavach Policy and Corona Rakshak Policy to the customers.

Update: 14 June 2021

Best Coronavirus Health Insurance Plans Based On Claim Settlement Ratio

Corona Kavach Policy and Corona Rakshak Policy are the two ultimate short-term coronavirus health insurance options that customers can choose from.

If you want to make a choice for your Covid-19 health insurance right away, take a look at the top 5 Corona Kavach Policies and top 5 Corona Rakshak Policies mentioned below. Please note that the ranking of the companies offering Corona Kavach Policies and top Corona Rakshak Policies has been done on the basis of claim settlement ratio since CSR is one of the key aspects to keep in mind while making a choice. The CSR for the year ended March 31, 2020, has been considered for ranking purposes.

Top 5 Corona Kavach Insurance Policies on the Basis of CSR for the Year 2019-2020

Source: IBAI’s General Insurance Claim Insights Handbook - 5th Edition.

Top 5 Corona Rakshak Policies on the Basis of CSR for the Year 2019-2020

(Source: IBAI’s General Insurance Claim Insights Handbook - 5th Edition.)

How to Buy Coronavirus Health Insurance from InsuranceDekho?

At InsuranceDekho, you can purchase a coronavirus insurance policy in two ways, i.e. online or offline. Both the processes are simplified enough and do not take much of your time.

To buy corona mediclaim insurance online, you must follow the simple steps given below:

1. Visit the official website of InsuranceDekho. Then click on the ‘Health’ tab.
2. Select your gender and enter your name and mobile number. You will receive an OTP, i.e. a One Time Password on the number given. Kindly enter that.
3. Tell us when you wish to purchase the policy by selecting an option from the drop-down menu. Then click on ‘View Quotes’.
4. Select the family members if you wish to add them too under your COVID-19 insurance policy. Then click on the ‘Continue’ button.
5. Select the age of the chosen family members.
6. Enter your Email ID and City. Then click on the ‘Submit and View Quotes’ button. There will be most suitable corona medical insurance plans displayed on your screen. Click on the one you want to purchase.
7. Select the term for which you want to buy the shortlisted COVID insurance cover.
8. Enter the required details and make the payment online via a secured payment gateway.

If you are unable to buy COVID insurance cover online, then you can opt for the offline process too. For this, you will be required to contact the customer care executives at insuranceDekho on the toll-free number 7551-196-989 and share your requirements. You can contact the executives any day between 9:30 AM to 6:30 PM. They will help you buy the most suitable corona insurance policy for you and your family at affordable premiums.

Key Benefits of Coronavirus Health Insurance

Coronavirus health insurance plans offer a wide array of benefits. Apart from the coverage benefits including hospitalisation expenses, pre-hospitalisation and post-hospitalisation expenses, one of the advantages offered by these plans is the convenience of premium. As these are short-term policies, there is no burden on you to keep paying the health insurance premiums for a lifetime.

Along with a Corona Kavach Policy or a Corona Rakshak Policy, it is imperative to have a regular health insurance policy as well for enhanced coverage. Also, kindly note that if there is a claim made during the policy term of any Coronavirus health insurance policy, then the No Claim Bonus of the existing health insurance policy will not have an immediate impact on it.

What is Covered Under Coronavirus Health Insurance Policy?

Coronavirus health insurance policies offer cover against the following medical expenses:

• Hospitalisation Expenses: Coronavirus health insurance policies cover hospitalisation expenses arising due to COVID-19 if it exceeds more than 24 hours.
• Quarantine Cover: COVID-19 specific health insurance policies also cover the insured individuals who are quarantined in government identified authorities.
• Additional Coverage: Some coronavirus specific health insurance policies like that offered by Go Digit General Insurance Ltd offer add-on covers that the insured can opt for by paying an extra premium. For instance, expenses related to alternative treatment (AYUSH), maternity benefit with newborn baby cover, and so on.

What is Not Covered Under Coronavirus Health Insurance Policy?

Coronavirus health insurance policy does not offer cover against the following medical expenses:

• Home Quarantine: Expenses incurred during the quarantine period spent at home are not covered under COVID-19 specific health insurance policies.
• Non-Recognised Quarantine Center: Medical expenses incurred when the insured is kept in quarantine at a non-recognised center for the treatment of COVID-19 are not covered.
• Pre-Existing Diseases: Any expenses arising due to treatment of pre-existing illnesses are not covered until the waiting period is completed.
• Hospitalisation Without Doctor’s Recommendation: If the insured gets hospitalised without the recommendation of a qualified doctor as specified on the prescription, then he/she will not be covered for the expenses arising due to treatment.

Is Coronavirus Covered Under My Existing Health Insurance Policy?

Yes. As per the mandate by Insurance Regulatory and Development Authority in India (IRDAI), all general and health insurance companies have to offer coronavirus cover under their health insurance plans, irrespective of which policy you own.

How to Make a Claim Under Coronavirus Insurance Plans?

The claim settlement process for coronavirus (COVID-19) health insurance policies is similar to that for regular health insurance policies. Under coronavirus health insurance policies, claims can be made in two ways, namely cashless claims and reimbursement claims. As talked about before, cashless claims can be availed if the treatment is taken at a network hospital. Whereas, reimbursement treatment facilities can be availed even at a non-network hospital. Read below to understand the process for both in detail:

• Cashless Claims: All the insurance companies today offer cashless treatment facilities. The process offers you quality medical treatment without having you pay anything at the hospital. It keeps you at ease even in difficult times. To avail of the benefit, you are just required to avail treatment at a network hospital and inform the insurance company about the same. The insurance company, after verifying the details, will settle the medical bill directly at the hospital. But before availing of treatment and making a health insurance claim, make sure if your health insurance policy covers treatment related to coronavirus or not.
• Reimbursement Claims: Reimbursement claims require you to avail of medical treatment for coronavirus (COVID-19) at any non-network hospital. You are then required to settle the bills out of your own pocket at the time of discharge after informing the insurer. Later when you make a claim, the insurance company transfers the amount to your bank account. But the insurance company settles the claim only after verifying medical bills and other documents.

Difference Between Social Distancing, Self-Isolation And Quarantine

The terms social distancing, self-isolation, and quarantine describe different approaches to limit the spread of various pandemics and epidemics including the novel coronavirus. To understand the difference between them in detail, read below:

Important Things to Consider When Buying Coronavirus Insurance Cover

Before buying a COVID-19 health insurance policy, there are a few things that you must keep in consideration. Some of these are explained below:

1. Sum Insured: A person who gets diagnosed with COVID-19 may suffer from a severe respiratory illness which may impact the overall functioning of the body. And the treatment for the same may cost a lot especially if someone has an underlying disease. So, when purchasing a COVID-19 health insurance policy, you must go for an adequate sum insured so that you and your family members are sufficiently covered in the time of need.

2. Coverage: Most health insurance plans for COVID-19 cover you for in-patient hospitalisation expenses, pre-hospitalisation expenses, post-hospitalisation expenses, road ambulance expenses, OPD expenses, etc. When choosing a COVID-health insurance policy for yourself and your family, look for as many coverage benefits as possible, so that you do not have to go through any trouble at the time of claim.

3. Waiting Period: The waiting period is that period that you have to wait for after buying a health insurance policy, to be eligible to make a claim. Most COVID-19 health insurance plans come with an initial waiting period of 30 days while others come with lesser waiting periods like 16 days or 15 days. So, do not forget to check the waiting period before purchasing any health insurance policy.

Tips to Follow When Buying COVID-19 Insurance

Experts warn that when buying COVID insurance cover, one should be very careful. Here are a few things tips that you must follow in order to make the best and informed decision when buying corona mediclaim policy:

1. You must look for an easy and quick claim settlement process. Make sure that the insurance company you choose offers you the same so that you or our family members do not face any difficulty in case of an emergency.
2. Do not forget to go through the exclusions and limitations under your corona mediclaim policy. It is important to understand the policy details so that you don’t find any hurdle at the time of claim settlement.
3. Make sure that you go through the list of network hospitals in India so as to avoid a last-minute rush for making decisions at the time of emergency. Make sure that the hospital you chose is nearby your place and has the facility to handle emergencies arising due to the novel coronavirus.

How Can I Protect Myself From Coronavirus?

To protect yourself from Coronavirus, you must take the following precautions:

• Follow social distancing practice by keeping yourself at a distance of at least 6 feet, i.e. 2 meters from people outside your house.
• Avoid visiting marketplaces, malls, or other places with poor ventilation.
• Wash your hands often with soap and water for at least 20 seconds. If soap and water is not available, then you may also use an alcohol-based hand-sanitiser with at least 60% of alcohol intent.
• Wear a face mask whenever in a public place, especially when you cannot maintain sufficient distance from people.
• Avoid touching your eyes, nose, and mouth.
• Use a tissue to cover your nose and mouth whenever you sneeze or cough. Dispose off the tissue properly and wash your hands after that.
• Use a disinfectant to clean the surfaces that you touch on a daily basis such as the table, chair, etc.