Your Guide for Corona Rakshak and Corona Kavach policies

As on 22^nd August 2020, count of Corona cases in India has risen to over 30 lakhs. Daily additions are well over 50,000 from last few days and it seems India is yet to pass peak of new additions. Additionally experts have warned that there will be wave II of corona outbreak. This is particularly problematic when Phase I itself haven’t waned yet

In this backdrop having sufficient Insurance cover, especially Health insurance cover has become a MUST. In India penetration of insurance is very low as compared to other countries. This may leave majority of society especially financially weaker groups, potentially vulnerable to effects of Covid 19. Many in india cant even afford to pay Rs. 1000-2000 per month for buying comprehensive health insurance for themselves and their families.

IRDA (insurance Development and Regulatory Authority of India) apex regulatory body of insurance sector in India have asked general and health insurance to have product specific to current pandemic and to offer short term duration to the customers, which cover the hospital expenses for the treatment of corona. In accordance to IRDA directives insurance companies have started to offer two Corona specific products, namely Corona Kavach and Corona Rakshak. Customers can either buy these policies directly through the insurers, either through websites or agents or buy through online web aggregators. Insurance premiums for these policies can be as low as Rs. 100-200 per month.

Before buying a Corona Kavach or Corona Rakshak plan, it is important that you are well aware of the various benefits of each of these plans as both these plans function differently. You must be sure about your specific needs and requirements and only then invest in any of these plans.

Before proceeding to buy a Corona Kavach or Corona Rakshak plan, it is important that you are well aware of the benefits, each of these plan offers. So that they fits into your insurance needs.

First let’s look at Corona Rakshak

What is Corona Rakshak policy?

Corona Rakshak is a single-premium “Fixed Benefit” health insurance plan that will pay 100% of the sum insured as lump-sum to the policyholder ones being tested COVID-19 positive that requires hospitalization of 72 hours or more. Most health insurance companies do not cover the cost incurred on personal protective equipment (PPEs), masks, and other hygiene-related consumables

Features of Corona Rakshak policy

This product is designed with fixed set of benefits which are given irrespective of insurance company you chose. These are,

1) The coverage amount ranges from Rs. 50,000 to Rs. 2.5 Lakhs (in multiples of 50,000)

2) Sum Assured is paid as lump-sum when Corona is diagnosed by a govt authorized centre

3) Pre issuance medicals not mandatory

4) Waiting period of 15 days

5) Coverage is for on Individual  life basis

6) Premium paid is tax deductible under section 80D

Benefits of Corona Rakshak policy

Some of the unique benefits of Corona Rakshak are,

1) 100% hospital bill payment (subject to Sum Assured taken). This has become very crucial at times of very high hospitalization bills

2) Lump-sum payment on diagnosis of Corona

3) Standard benefits: The benefits of these policies are standard across insurance.

4) Waiting period. Under Corona Rakshak, waiting period is 15 days only as compared to many health insurance plan wherein this period is in months if not years

5) Policy tenure: There are 3 policy tenures : 3.5 months, 6.5 months and 9.5 months

Inclusions of Corona Rakshak policy

1) Hospitalization Expense: Corona Rakshak policy will cover hospitalization expenses such as nursing charges, room rent, ventilator charges etc.

2) ICU charges: This policy also cover ICU charges

3) Ambulance charge : Ambulance charges upto Rs. 2000 are compensated

4) Home Treatment cost : If patient is required home care treatment, same will be covered under Corona Rakshak for 14 days of home treatment

5) Ayush Cover : Plan also cover AYUSH (Ayurvada) treatment

Exclusions of Corona Rakshak policy

There are a few exclusions which aren’t covered under Corona Rakshak. These are,

1) Claimed arisen from treatment taken from unauthorized centre

2) Treatment taken overseas

What is Corona Kavach policy

Corona Kavach is an indemnity based Health Insurance policy that covers hospitalization and medical expenses. This policy can be taken either as an Individual or on family floater basis. This product was launched on 10^th July 2020 and the guidelines based on which its launched will be valid till 31^st March 2021

Features of Corona Kavach policy

1) The Corona Kavach policy covers hospitalization expenses including room rent, nursing cost, ICU cost, surgeon cost, consultation fees etc

2)  Pre and post hospitalized expenses are covered. Details mentioned below

3)  Ayush Cover : Plan also cover AYUSH (Ayurvada) treatment

4) Policy tenure: There are 3 policy tenures : 3.5 months, 6.5 months and 9.5 months

5)  Corona Kavach policy has standard wording across insurance companies

6)  Waiting period of 15 days

7)  Coverage is for on Individual  life or Family Floater basis

8)  Premium paid is tax deductible under section 80D

Benefits of Corona Kavach policy

1) Hospitalization expense : This policy is indemnity based which mean it will cover all hospitalization expenses will be covered including ICU charges

2) Room Rent : There is no cap on room rent

3) Ambulance Cover: Ambulance expenses upto Rs. 2000 are coveed.

4) Pre / Post Hospitalization Expense covered

5) Waiting period of 15 days

Inclusions of Corona Kavach policy

1) Hospitalization expense : This policy is indemnity based which mean it will cover all hospitalization expenses will be covered including ICU charges

2) Room Rent : There is no cap on room rent

3) Ambulance Cover: Ambulance expenses up to Rs. 2000 are covered.

4) Pre Hospitalization Expense : The policy covers, expenses incurred up to 15 days prior to date of admission in hospital

5) Post Hospitalization Expense Policy covers expenses incurred up to 30 days from date of discharge

6) Ayush Cover : Plan also cover AYUSH (Ayurvada) treatment

Exclusions of Corona Kavach policy

There are a few exclusions which aren’t covered under Corona Rakshak. These are,

1) Policy doesn’t cover OPD expenses / Day care procedures

2) Claimed arisen from treatment taken from unauthorized centre

3) Treatment taken overseas

4) Medicines purchased without proper prescription

* Exclusions may vary from insurer to insurer

Now let’s look how Corona Rakshak and Corona Kavach polices compares

	Corona Kavach	Corona Rakshak
Providers	All Health Insurance	Health as well as life insurance
Period	3.5 months / 6.5 months / 9.5 months	3.5 months / 6.5 months / 9.5 months
Policy cover	Min - Rs 50,000	Min - Rs 50,000
	Max – Rs. 5 Lakh	Max – Rs. 2.5 Lakh
Policy benefit	Benefit of policy on minimum 24-hour hospitalization	Benefit of policy on minimum 72 hours hospitalization
Benefit	Assured amount paid on hospitalization	Payment of full amount spent on hospitalization and positive treatment
Cover Type	Individual or Family Floater	Individual