Irdai guidelines on short-term Covid policies
The Insurance Regulatory and Development Authority of India (IRDAI) has now allowed life, general and health insurers to offer coronavirus specific short-term health insurance policies. These short-term policies will offer insurance for a period between 3 to 11 months. These policies are permitted to be offered both as individual and group products.
What are short-term health insurance policies?
As per the circular, short term health policy means any health insurance policy contract which has been issued for a policy term of less than 12 months. Short term policies could also be issued for a minimum term of 3 months to a maximum term of 11 months.
With an objective of
creating available insurance protection to varied sections of
individuals within the prevailing COVID-19 pandemic, it's considered
that short term insurance policies providing coverages specific to
COVID-19 disease is that the need of the hour. Accordingly, all insurers (Life, General and Health Insurers) are allowed to offer COVID - 19 specific
short term health insurance policies subject to these guidelines.
Short term health policy for the aim of those guidelines means any insurance policy contract which has been issued for a
policy term of but 12 months.
Short term insurance policies are
permitted to be devised offering insurance cover
specific to only COVID-19.
This Short term policies are permitted to be offered both as individual or group
products.
Short term policies could also be issued
for a minimum term of three months to a maximum term of
11 months
A policy term but three months isn't permitted.
Where the term of policy is fixed as 12 months, an
equivalent isn't considered as
short term health policy.
Optional covers that enhance the insurance coverage
are permitted to be offered for an equivalent policy
duration.
No separate add-ons are permitted.
Insurers are advised to plan inclusive
short term insurance products. Where
waiting periods are a part of the merchandise , such waiting period shall not
exceed fifteen days.
General and Health Insurers are permitted to
supply both indemnity based and benefit based short term insurance policies.
Lifelong renewability, migration and
portability stipulated under Regulation 13 and 17 of IRDAI (Health Insurance)
Regulations, 2016 respectively aren't applicable
to the short term health policies offered by general and health insurers.
There are two sorts of COVID-19 special
plans -- one is predicated on indemnity
that pays the particular amount spent on
the disease and another is benefit-based plan which
will pay the whole lumpsum
amount on the diagnosis of COVID-19 and subsequent requirement of
hospitalisation. Health insurance companies offers both sorts of plans while life
assurance companies will offer only benefit-based plans.
Benefit-based plans
In the benefit-based COVID-19 short-term plans, the policyholder will receive a
lumpsum benefit adequate to 100 per cent
of the sum insured if he tests positive for COVID-19 and requires
hospitalisation for a minimum period of 72 hours.
Indemnity-based plans
Indemnity-based policy pays back the particular expenses
incurred on the treatment of the covered diseases under specific conditions.
IRDA has allowed only health insurers to supply this
policy. It will come in two variants -- family floater and individual.
"It will cover room, boarding, and nursing expenses. Surgeons,
anaesthetists, consultants, specialist fees, including consultation through
telemedicine, are going to be covered.
Other costs like oxygen, operation theatre
charges, surgical appliances, drugs and medicines, PPE kits, and gloves, among
others are going to be admissible if
hospitalised for a minimum of 24 hours. Intensive care unit and intensive
cardiac care unit expenses are going to be covered
too.
This Covid-19 cover are often useful for somebody who doesn't have a insurance
policy and is trying to find one to guard them amid the coronavirus pandemic.
However, if you already have a regular or comprehensive health insurance policy
you can avoid it given that Covid-19 is covered under these policies.
The impact of COVID-19 on millions of people directly or indirectly affects their daily life.
Besides, if you do not have any insurance plans, then you'll buy a COVID plan but you must recognize
that the plan will only cover you for COVID-19 and you'll still be in danger,
when it involves the other critical illnesses such as cancer, diabetes,
heart-related ailments.