- Covid-19 cases increase in India, financial advisers stress on the need of a health insurance plan for family more than ever.
- The Insurance companies launch a health policy- called Corona Kavach (armour against coronavirus)- to cover the cost of Covid-19 treatment.
- Pandemic more as a potential financial risk than a peril to health for common man in India.
- The highest purchase of Corona Kavach plan is by millennials as 43 per cent of the buyers are in the age group of 18-30 years.
In view of the global pandemic COVID-19, Insurance Regulatory and Development Authority of India mandated all general and health insurers to offer indemnity-type COVID Standard Health Policy called Corona Kavach which addresses basic health insurance needs of public related to COVID.
The coronavirus has become a bitter reality across the world. We have shut down schools, cinema, workplaces, places of worship; even India’s cricket season stands cancelled till further notice! We have embraced masks, sanitizers and adopted the social distancing norms in our daily lives.
But these offer passive resistance against the aggressive viral infection which so far has affected more than 10 lakh people in India. The physical, and mental toll of dealing with Covid-19 is something we can’t do much about, but for offsetting the financial trauma of the long treatment, this health insurance for coronavirus treatment was introduced.
What is Corona Kavach Insurance Policy?
It is a standard health insurance policy which provides cover for medical expenses arising due to Covid-19. The word- KAVACH- is the Hindi translation of the word shield/ armour depicting overall protection.
The policy is available on individual, group and family floater basis. It offers Covid Hospitalization cover and optional cover on Benefit Basis. The sum insured under this policy is Rs 50,000 to 5,00,000 (in the multiples of fifty thousand). The waiting period is 15 days and policy period is three and half months (3.5 months), six and half months (6.5 months), nine and half months (9.5 months) including waiting period.
What is the eligibility criteria for this Policy?
The policy can be availed by persons between the age of 18 to 65 years. It can be availed for Self, spouse, Parents, Parents-in-law and Dependent Children up to 25 years of age.
Type of expenses covered under Corona Kavach:
(The policy covers expenses subject to limits specified under each head)
- Pre, post and hospitalisation expenses.
- Pre Hospitalization Expenses: 15 days.
- Post Hospitalization Expenses: 30 days.
- Home care treatment: Maximum up to 14 days per incident
- Road Ambulance cover Charges: Rs 2,000 per hospitalization
- Ayush treatment. (non-allopathic).
- Treatment for co-morbidities during the treatment for Covid-19.
What is not covered under the Policy?
The cover will only be applicable if the person insured tests positive for Covid. Expenses such as diagnostic expenses not related to current diagnosis or hospitalisation, dietary supplements, unproven treatments, vaccination charges, treatment expenses incurred in case of diagnosis outside India are not covered under Corona Kavach.
How to purchase Corona Kavach policy?
Corona Kavach policy can be purchased from an insurance agent or insurance company or the insurance aggregator website. Remember that policy coverage shall cease if the insured person travels to any country placed under travel restriction by the Indian government.The plans can also be accessed through telephonic and online enquiries from different insurance companies. For more information visit the IRDAI official website which is backed by the Government of India.
Why is there a demand for this Insurance and popularity among youngsters?
The reasons for the interest in Corona-specific cover are many. It appears that there is a feeling among the people that Covid-19 is here to stay for some more time and this is corroborated by the greater demand for policies ranging from six-and-a-half months to nine-and-a-half months.
According to early indications available to insurers, the bulk of the buyers of the standard Covid-19 policy, Corona Kavach, are in the 20-30 age group.
It reflects that millennials, who are usually not keen on buying health insurance, have become more serious about health cover as they realise its benefits during pandemics.
In general terms- Given the speedy recovery rate in that age group, financial security is more important. The pricing of the policy, which is seen as “affordable” by most urban young working people, and the ease of buying it online in a matter of minutes, are other factors contributing to its popularity.