The corona specific health insurance policies were launched with much fanfare last year. This year, amid the second wave of covid-19, when the cases have risen sharply not all insurers are keen to renew these Covid-specific policies. Insurers are asking policyholders to either move to a comprehensive policy or buy a new Covid Kavach policy.
Corona Kavach policy covers hospitalisation expenses for the treatment of Covid-19. This policy does not have any room rent limit and covers home treatment maximum of up to 14 days per incident. Most importantly, given that there are a lot of consumables such as PPE that are not paid in a standard policy, the Covid Kavach policy covers the cost of PPE as well as expenses incurred on treatment of any comorbidity.
Mahavir Chopra, founder of Beshak.org, which is a consumer awareness platform for insurance buyers in an interview with Money9 said, “When people are going for renewal, there are not getting the option to renew their policies. Insurers are saying to buy a new policy. We checked with 12 insurers, but only a few of them are giving renewals, others are saying to buy a new policy.”
The catch in buying a new policy is that policyholder will be evaluated again and it will be at the discretion of the insurer to offer the policy. Chopra added “Another point is there is a waiting period in the policy. In case of a renewal waiting period of 15 days is not applicable. But here because it is a new policy again a cooling-off period will be applied during which you cannot claim for Corona treatment. It’s a big catch because of which you might not even get the policy.”
The Insurance Regulator and Development Authority (IRDAI) directed insurers last year to launch standard short-term Coronavirus specific policies so that health insurance becomes simple and affordable in these testing times. The policy was initially offered only up to 31st March 2021, but it was later extended by IRDAI to 30th Sept 2021. Though the regulator permitted the insurance companies to renew and issue new policies not all of them are renewing them. Experts say insurers are facing huge claims in these policies because of which insurers are feeling the need to correct the premium they charged last year.
In such a situation what is a solution here for policyholders who want to renew or buy new health insurance policies in an ongoing pandemic? Customers have two options, said Chopra, “Either they buy the new policy or they complain to the grievance officer of IRDAI. The third option is to buy from the insurers who are renewing last year’s policy because if you have to renew next year it can be done. Four or five insurers are renewing last year’s policy.”
