The Insurance Regulatory Authority of India (IRDAI) has decided to give consumers the option to renew the Corona Kavach and Corona Rakshak policies.
The Insurance Regulatory Authority of India (IRDAI) has decided to give consumers the option to renew the Corona Kavach and Corona Rakshak policies. While Corona Kavach is a standard indemnity-based COVID-19 policy, Corona Rakshak is a fixed benefit plan.
According to the latest circular, these policies can be renewed for 3.5 months, 6.5 months and 9.5 months until a maximum of March 31, 2021.
These COVID-19 specific health insurance plans were launched in July and gained popularity due to low premium, short policy terms and waiting period of just 15 days.
Experts believe that the decision to renew these policies is a welcome move by the regulator.
Rakesh Goyal, Director, Probus Insurance -- an insurtech broking company --suggests that people should go for renewal as there would be no additional waiting period applicable to the current policy, which otherwise would have been for the new policy.
"Additionally, the IRDAI is allowing the customers to change the sum insured during the renewal and offering a waiting period only for the enhanced portion. This step seems to be a helpful move as it would provide the flexibility for the insured to use the already existing sum insured without the need of waiting for the entire sum insured to be used," he opines.
Anand Roy, Managing Director of Star Health and Allied Insurance believes that continuity privileges for these policies will motivate policyholders to migrate to comprehensive health insurance policies.
"This will ensure that the insured and their families remain protected even after the pandemic is over," he says.
While 'Corona Kavach' and 'Corona Rakshak' policies provide only specific cover with regards to the treatment of COVID-19, a comprehensive health insurance plan may protect the policyholder against a wide range of illnesses including COVID-19.
Ajay Shah, Head- Retail Sales, Care Health Insurance calls the renewal provision a favorable one for individuals who’ve found value in short-term COVID-19 specific health insurance.
“With the renewal, one can stay covered for a longer period of time," he believes.
However, the decision to renew the current policy or buying a comprehensive policy that offers coverage for a wide range of medical ailments including coronavirus is entirely a customer’s choice.
"It is recommended that one should look at opting for a more comprehensive cover, but in case an individual is still not sure then it is always ideal to at least renew the existing policy to remain protected," he suggests.
The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.