The Insurance Regulatory and Development Authority has made it mandatory for insurance companies to provide short term health insurance plans that will cover expenses related to the COVID-19 treatment. There are two plans that cater to this segment, including Corona Kavach health insurance policy and Corona Rakshak policy. While they both are designed to provide financial assistance to people for the treatment of this pandemic disease, their features are different from each other. In this blog, we are highlighting the key difference between both the health insurance policies.
The Corona Kavach Policy is a standard COVID health policy that must be offered by all general as well as standalone health insurance providers. A life insurance company cannot provide this type of policy. The Corona Rakshak Policy, on the other hand, can be acquired at any insurance provider, including life insurance companies.
Moreover, Corona Kavach health insurance plans is being offered by 30 companies as of July 10th, 2020. Corona Rakshak Policy is always at a majority of insurers; however, many are yet to launch them.
The minimum and maximum coverage associated with Corona Kavach health insurance policy stand at Rs. 50,000 and Rs. 5 lakhs, respectively. The coverage of Corona Rakshak policy is less than Corona Kavach. An insured individual can acquire minimum coverage of Rs. 50,000, whereas the maximum coverage is Rs. 2.5 lakh.
The Corona Kavach policy comes with one basic mandatory cover as well as one optionalcover. The premium is paid separately in both the covers allowing the insured to choose and pay depending on his or her needs. The standard cover in this policy is provided on an indemnity basis and optional Cover is available on a benefits basis. In the former, the claim is paid based on the expenses incurred during hospitalization, whereas Benefits Cover provides daily cash flow to the primary care giver.
Corona Rakshak Cover, on the other hand, is entirely a benefit based plan. In this, the insured gets fixed compensation post the patient has been tested positive with COVID-19 and hospitalized for around 72 hours. In this policy, irrespective of the medical expenses you have incurred, you will get the insured sum.
The base coverage in Corona Kavach policy is provided when the patient has been hospitalized for a minimum of 24 hours. Irrespective of the days a patient spends at the hospital, the insured sum will be paid in the claim. Corona Rakshak policy; however, requires patients to be hospitalized for a minimum period of 72 hours.
While Corona Kavach policy is provided on an as well as family floater basis, Corona Rakshak plan is only provided on an individual basis. Both the policies over co-morbidity resulted from the COVID-19 treatment. Note that these policies are not substitutes for an all-encompassing health insurance policy. They only provide specific cover for a short time period in order to make COVID treatment more affordable to people. These are supplementary covers that provide financial assistance to people amidst the ongoing pandemic.