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Corona Kavach, Corona Rakshak insurance policies on offer now; should you buy them?

Corona Kavach, Corona Rakshak insurance policies on offer now; should you buy them?

Corona Kavach, Corona Rakshak insurance policies on offer now; should you buy them?
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By Anshul  Jul 14, 2020 3:59:59 PM IST (Updated)

‘Corona Kavach’ and ‘Corona Rakshak’ – the two standard COVID-19 health insurance policies are likely to be launched by insurance companies on Friday.

Corona Kavach and Corona Rakshak – the two standard COVID-19 health insurance policies have been launched by insurance companies on Friday. While Corona Kavach is a standard indemnity-based COVID-19 policy, Corona Rakshak is a fixed benefit plan.

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These policies have common coverage across the industry, with a waiting period of 15 days and a varying tenure of up to 9.5 months.
Corona Kavach has been launched to cover the cost of treatment of any co-morbid conditions, including pre-existing conditions, along with the treatment for the coronavirus infection or disease with the tenure ranging from 3.5 months to 9.5 months.
"The growing incidences of COVID-19 cases in the country have made people prioritize their health. This is the ideal time to channelize the awareness to bring more people under the ambit of health insurance. The Corona Kavach plan will certainly bring value to customers who want cover for COVID-19 related treatment costs," says Krishnan Ramachandran, MD & CEO, Max Bupa Health Insurance.
The premium for Rs 2.5 lakh 'Corona Kavach' cover from Max Bupa for an adult (31-55 year age group) has been kept at around Rs 2,200 and for 2 adults and children for the same age group, it has been kept at around Rs 4,700.
The product comes with in-built benefits such as hospitalization cover due to coronavirus, treatment availed at home, AYUSH treatment, pre and post hospitalization.
Meanwhile, under 'Corona Rakshak' policy, if someone is diagnosed with COVID-19 and hospitalised for three days, then a fixed amount (which is sum insured) will be paid by the insurers.
Experts believe that the decision to launch these policies is a welcome move by the regulator.
"This comes as a big relief for many policyholders who are unable to invest in high sum insured plans," explains Ankit Agrawal, chief executive officer and co-founder, InsuranceDekho.
Prasun Sikdar, Managing Director and CEO, ManipalCigna Health Insurance Company Limited seconds Agarwal's views.
"These polices will provide millions of people affordable access to quality healthcare and help in taking away some of the financial burden," he adds.
Nevertheless, users should take these policies only as an addition to the traditional insurance policies and not as a substitute, warns experts.
"In case users do not have basic health cover, this policy will provide them specific cover with regards any medical expenses towards the treatment of COVID-19. In case they already have a health insurance policy, they should purchase this policy as a supplementary cover," says Shanai Ghosh, Executive Director & CEO, Edelweiss general Insurance,
Naval Goel, chief executive officer and founder, PolicyX further adds that these policies should be bought to get additional coverage for PPE kits and other essential consumables which may not be covered in existing policies.
It is important to understand that health insurance is a long-term product that needs to be renewed year after year, keeping in mind the medical inflation and increase in lifestyle illnesses.
"To provide maximum value to people, a comprehensive health insurance plan that protects against a wide range of illnesses including coronavirus will be more suitable," opines Ramachandran.
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