Covid-19 Health Insurance Policy: Corona Rakshak And Corona Kavach Policy – How They Work

The incidence of Coronavirus is on the rise and till the time a vaccine is found, the risk of hospitalisation due to COVID-19 remains high.

- Manish Jain

Taking cues from the high cost of treatment and the need of a specific health insurance policy covering hospital bills solely on account of COVID-19, the insurance regulator had asked all insurance companies to launch exclusive products to cover them.

Corona Rakshak Policy is different from Corona Kavach Policy as the latter can be launched only by general and health insurers and is a reimbursement based policy. In Corona Kavach Policy only the hospital bill gets reimbursed as it is an indemnity-based plan but in Corona Rakshak Policy, the 100 percent of the sum insured is to be paid to the policyholder as it a benefit-based plan.

CORONA KAVACH POLICY

Corona Kavach Policy needs to be compulsorily offered by all general and health insurance companies from July 10, 2020. What makes Corona Kavach Policy a simple product to buy is that every insurer needs to carry common policy wordings. The features and the premium will be more or less similar across the insurers. So, now if anyone wants to buy a health cover to guard against Covid-19 related hospital expenses, one can buy it from any insurer.

Covid Positive

The hospitalization expenses incurred by the insured person for the treatment of Covid will be paid by the insurer on positive diagnosis of Covid only when the testing has been done in government authorized diagnostic centre.