It’s crucial to confirm whether the insurance provider’s product is a benefit-based health policy or a standard indemnity health policy that will cover Covid-19 treatment. In the former, if a person tests positive for Covid-19 and requires hospitalisation for the illness’ treatment, a fixed and guaranteed lump sum amount equal to the sum insured would be provided. *
The latter, however, would pay for or assist with hospital-related medical expenses. Look at these policies’ salient characteristics:
Regular indemnity-type health insurance helps to defray the cost of treating several illnesses, such as Covid-19 treatment, diabetes, cancer, and heart-related diseases. A typical indemnity-type health insurance policy will pay for coronavirus treatment if hospitalisation is necessary. *
Up to the cost insured by the policy, these health insurance reimburse the price or pay according to the actual treatment costs. These kinds of health insurance do not cover your loss of income. All insurers must now provide an indemnity-type Covid-19 standard health insurance policy (Corona Kavach), per a recent directive from the Insurance Regulatory and Development Authority of India (IRDAI).* #
These policies have fixed benefits, which means that if you happen to test positive for Covid and are hospitalised for Covid-19 treatment, you will receive a fixed sum (sum insured) in exchange for your premium payments. These health insurance policies offer protection against particular diseases, such as Covid-19. Compared to medical indemnity insurance, disease-specific insurance is much more affordable because it only covers the risk of getting one or more specific diseases. However, recently the IRDAI ordered all insurers to offer a Standard Benefit Based Covid-19 health insurance policy (Corona Rakshak), which typically offers a sum insured for up to Rs 50,000. *#
Can you get assistance from a standard individual benefit-based coronavirus health insurance policy? How should an approach be chosen in the current pandemic? Suppose you’re purchasing health insurance during the coronavirus pandemic. In such a case, you should conduct your research and decide whether you want to buy a benefit-based Covid-19 policy, an indemnity-type regular health policy, a Covid-19 standard health policy, or a combination of these policies. While the second and third options would only provide health insurance coverage for specific diseases and could be less expensive, indemnity-style regular health policies would offer insurance for all conditions and are more expensive. If purchasing a traditional indemnity health insurance policy, you should check the ICU fees, hotel fees, and other add-on covers. *
For uninsured people, now is the time to purchase health insurance. Still, it’s essential to be careful when you buy the indemnity-type Covid-19 policy or the benefit-based Covid-19 health policy, as both policies only cover the costs associated with coronavirus treatment and no other illnesses. Regular indemnity health insurance is advantageous because it covers several other conditions/diseases. Before purchasing such policies, look for general exclusions. *
*Standard T&C Apply.
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.