Covid insurance: Premiums may be around Rs

750 for a Rs 50,000 cover, Rs 4,500 for Rs 5 lakh

Insurance Regulatory and Development Authority of India (Irdai) recently
announced guidelines for two standard Covid-19 health insurance policies.
The products, called 'Corona Rakshak' and 'Corona Kavach', will be
launched by the insurance companies on July 10. Insurers are yet to
announce the premium rates for the policies, but market participants say
premiums for the policy will be approximately Rs 750 for a Rs 50,000 sum
insured and over Rs 4,500 for a Rs 5 lakh sum insured.

The Corona Rakshak policy is a standard benefit-based health policy

which will be offered on individual basis only. The sum insured under the
policy will be Rs 50,000 to Rs 2.5 lakh. While Corona Kavach policy will
be offered on indemnity basis with the sum insured ranging from Rs
50,000 to Rs 5 lakh.

Participants in the non-life industry say launching the Covid-19 specific

cover is a welcome move as this will attract more investors into health
insurance segment.

S Prakash, MD at Star Health and Allied Insurance said: "Hardly, 10% of

the Indian population have some form of health insurance coverage, which
includes private retail insurance or employer paid group insurance. This
new Covid-19 specific cover can be first steps towards achieving adequate
health cover for all citizens in India."

Under the Corona Kavach policy, which is an indemnity plan will cover all
the hospitalisation expenses that arise from the novel coronavirus. The
launch of this product will ensure that hospitalisation expenses will be
covered up to the sum insured.

Corona Rakshak is a fixed benefit plans in which if policyholder is

diagnosed with Covid-19 and hospitalised for three days than a fixed
amount (which is sum insured) will be paid by the insurance companies.
The policy tenure can be 3.5 months, 6.5 months and 9.5 months, the
waiting period is 15 days.
In the Corona Kavach policy, insurers can also offer optional cover for
hospital daily cash, Irdai said in the guidelines. However, this optional
cover will be made available only under benefit basis.

"Covid-19 specific cover is designed for the customers who cannot afford
the comprehensive health plan & need security against such deadly
disease. I would say that those people who do not have comprehensive
health plan it is better to go for indemnity plans - which is Corona
Kavach," Amit Chhabra, head, health insurance at Policybazaar.com, said.