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.
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.
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.
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