Moneycontrol PRO
Upcoming Event:Join us for the exciting discussion with Danone on role of nutrition, protein in working professionals’ quality of life on July 31, 3pm.
you are here: HomeNewsTrends

Coronavirus outbreak | IRDAI’s new standard COVID-19 health cover may be priced between Rs 600 and Rs 3,000

The new insurance policy for COVID-19 would cover hospitalisation cost and include a benefit component whereby the amount would be paid immediately upon a novel coronavirus infection being detected.

June 23, 2020 / 02:00 PM IST

The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a premium of Rs 600 to Rs 3,000 on standard health cover for the novel coronavirus disease, depending on the amount insured.

The new coronavirus insurance cover will be available from July and it will help make COVID-19 treatment much more affordable in the country, where over four lakh people have already tested positive.

For live updates on coronavirus, click here

An official working for the public sector general insurer has said that the premium could range from Rs 600 to Rs 1,400 per policy to about Rs 2,000 to Rs 3,000 per policy.

According to a Business Line report, most health and general insurance companies have begun chalking out the pricing for the proposed COVID-19 health cover, which would have a sum of Rs 50,000 to Rs 5 lakh insured.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

Another IRDAI executive informed that the new novel coronavirus disease cover product will be priced significantly lower normal products since it will be a single disease cover. Most insurers will be filing for the product over the next few days as it will have to be ready for consumers by June 30.

The insurance policy would cover hospitalisation cost and include a benefit component whereby the amount would be paid immediately upon a novel coronavirus infection being detected. It will have a 15-day waiting period.

Insurers have said that this new standard health cover would also include costs of consumables such as face masks, PPE kits, etc., to some extent, which are expensive and often leave patients burdened.

Commenting on this, one of the IRDAI executives said: “The new product will cover the cost of PPEs — IRDAI has said this categorically. It should help cover the difference in treatment. Further, it is an indemnity product, which will give a lump-sum amount up to the limit of sum insured…. Insurers are already paying standard rates for these in case of existing policies.”

Notably, those who already have a health insurance policy need not go for the new COVID-19 cover as it is already covered by the existing policies.

To follow our full coverage on coronavirus, click here
Moneycontrol News

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark