Sell standardized COVID-19 policies: IRDAI to insurance companies
As the number of COVID-19 cases continues to surge, the national insurance regulator is pushing standardized policies to help people protect themselves from the deadly disease. The Insurance Regulatory and Development Authority of India (IRDAI) has announced two policies - Corona Kavach and Corona Rakshak - that insurers across the country have to start selling mandatorily by July 10. Here's all about the policies.
Corona Kavach to be sold by general and health insurers
Corona Kavach will be a standard indemnity policy that will cover the treatment of the disease for a tenure between 3.5 and 9.5 months. The maximum sum insured under this will be Rs. 5 lakh and the coverage would include the cost of the treatment of the disease, hospitalization (including pre, post-hospitalization expenses), expenses of home care, AYUSH treatment, and comorbid condition treatment.
Corona Rakshak from all insurers
The second, Corona Rakshak policy will be a standard benefit-based policy that pays out a fixed amount to an individual. However, the sum insured under this plan is lower and caps at a maximum of Rs. 2.5 lakh. Once the total sum insured is paid, the policy will be terminated, IRDAI said in its notice to insurers.
Other important elements
IRDAI has asked the insurers to keep the premiums on the affordable side, with no differences on the basis of location or zones, and charge them through a one-time payment mode. Plus, for the Corona Kavach policy, "5% discount in premium shall be provided to health care workers." Both policies also have to be sold by the same aforementioned names.
COVID-19 crisis continues to grow worse in India
The standardized policies come as the COVID-19 situation continues to grow worse in India. In just 39 days, the number of infections in the country has gone from 1 lakh to more than 5 lakh, while the death count stands at over 16,000. Globally, the number of infections has surpassed the 1 crore-mark and deaths stand at over 5 lakh.