Covid-19 treatment: Things you should know about Corona Kavach and Corona Rakshak

The current wave of Covid-19 exposed the vulnerability of our healthcare systems and reiterated the unpredictable nature of life. While we are taking all necessary precautions to protect our health, it becomes all the more important to buy a health insurance policy so that we are not financially hit hard.

You have three health insurance options to choose from which can cover Covid-19 treatment. First, you can buy a regular comprehensive health insurance plan. Second, you can buy Covid Kavach which is a standard indemnity policy and was launched last year by all insurers given the regulator’s directive. Third, the Covid Rakshak plan is a benefit policy and again a standard policy with common standard terms and conditions across insurers. Here is a detailed list of what all these policies include and exclude:

Option 1: Corona Kavach Policy (Indemnity Product)

This policy covers you against hospitalisation expenses incurred on the treatment of Covid-19. The important point to note is it reimburses bill only on positive diagnosis in a government authorized diagnostic centre including the expenses incurred on treatment of any co-morbidity. It also covers you against the treatment at home maximum up to 14 days per incident are covered

Features:

Policy type: Individual and Family Floater
Policy Period : 3 ½ months, 6 ½ months and 9 ½ months (105 days, 195 days and 285 days )
Sum Insured: Rs 50,000 to Rs 5,00,000 (in multiples of Rs 50,000)
Eligibility: Day 1 -65 years (Minimum Entry age for principal insured 18 years)
Modes of payment: Single premium payment
Pre/Post hospitalization: 15 days/30 days
Waiting period: 15 days
Room Rent Limit – There is no capping on the room rent. The whole room rent amount gets reimbursed.
Pre-existing Illness– It includes pre-existing co-morbid condition along with the treatment of Covid-19.
PPE Kit: PPE kit, mask and gloves are included
Consultation fee: It also includes expenses for Telemedicine.
Optional cover: Offers Hospital Daily Cash: 0.5% of sum insured per day. The benefit is paid a maximum up to 15 days.
Major exclusions :
• Any covid claim where it got diagnosed prior to policy start date
• Daycare treatment and OPD treatment
• Testing done at a diagnostic centre that is not authorized by the government.
• The covers ceases if travelled to any government restricted country.

Option 2: Corona Rakshak Policy (Benefit Product)

This policy does not reimburse hospital bills instead a Lump sum benefit equal to 100% of the Sum Insured is paid on the positive diagnosis. The important point to note is it requires hospitalization for a minimum continuous period of 72 hours. The policy terminates after the payment of the sum insured.

Features of Corona Rakshak Policy:

Policy type: Individual
Sum Insured : Rs 50,000 to Rs 2,50,000 (in multiples of Rs 50,000)
Policy Period : 3 ½ months, 6 ½ months and 9 ½ months (105 days, 195 days and 285 days)
Payment Mode: Single premium
Eligibility: Persons aged 18-65 years
Major Exclusions
• Any covid claim prior to commencement of the policy or during the waiting period
• Cover ceases if insured travelled to any country placed under travel restriction.
• Testing done at a Diagnostic centre which is not authorized by the Government

Option 3: Basic Health/Mediclaim Insurance Policy (Benefit Policy)

A regular health insurance policy covers you against all illnesses which require hospitalisation and is not limited specifically to Covid treatment. The important point to note is that the policy reimburses you only after 48 hours of hospitalisation.

Features of Comprehensive health insurance:

Policy type: Individual and Family Floater
Sum Insured Options: No Limit
Policy Period: 1 year
Modes of payment: monthly, quarterly, half-yearly and annual
Eligibility: Persons aged 18-65 years
Room Rent: Depends on policy to policy. Many policies have sub-limit of 1 % on room rent.
PPE: Under the new proposed rates, the partner hospitals can charge between Rs 1,200 and Rs 2,000 for PPE depending upon the severity of the sickness. But insurers say PPE kits have once again become a significant cost of hospital bills.

Major Exclusions: Home care and teleconsultations are getting covered by a very few companies.

Money9 says buy a basic health insurance policy as the first layer of protection as this will give you a much wider coverage not only against coronavirus but also other illnesses and pandemics. Once you have a comprehensive policy you can go for the second layer of protection with Corona Kavach or Corona Rakshak policy.