IRDAI asks insurers to launch standard Covid-19 health covers with same name, features

With the spread of Novel Coronavirus COVID-19 continuing unabated, the Insurance Regulatory and Development Authority of India (IRDAI) has asked the Health Insurance and General Insurance companies to launch short-term COVID Standard Policy by July 15, 2020 with specific name and features as per the guidelines issued by the insurance regulator.

Although the IRDAI guidelines used to contain standard features for insurance plans of similar categories, but it would be the first instance that all the insurance companies will launch a plan with the same name as the insurance regulator has directed that the nomenclature of the product shall be Corona Rakshak Policy, succeeded by name of insurance company, (i.e. Corona Rakshak Policy, <name of insurer>) and no other name is allowed in any of the documents.

As per the guidelines issued by the IRDAI, the Corona Rakshak Policy will have following features and benefits:

The minimum Sum Insured (SI) of the policy will be Rs 50,000, while the maximum SI will be Rs 2,50,000 (in the multiples of Sum insured fifty thousand).

There will be three different tenures of the policy – three and half months, six and half months and nine and half months i.e, 105 days, 195 days and 285 days respectively.

The minimum entry age to avail the policy is 18 years and the maximum entry will be 65 years or more, if an insurer wants to allow older persons to apply for the policy. A proposer with higher age can obtain policy for adult members of the family, without covering self.

Lump sum benefit equal to 100 per cent of the SI shall be payable as per the policy on positive diagnosis of COVID, requiring hospitalisation for a minimum continuous period of 72 hours. Test should be done from a government authorised diagnostic centre for a valid positive diagnosis of COVID for admissibility of claim request.

The mode of premium of the policy will be single premium and the IRDAI has not fixed the premium rate of the policy, but has directed that the premium under this product shall be pan India basis and no geographic location / zone based pricing is allowed.

With the identical features and benefits, there will be little scope for difference in premium of different insurance companies.

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