Major differences between Corona Rakshak, Corona Kavach, and other coronavirus health insurance policies

Many insurance companies have formulated their Corona Kavach and Corona Rakshak policies based on guidelines issued by the Insurance Regulatory and Development Authority of India (IRDA).

These standard health insurance policies will cover the cost of the treatment of coronavirus disease. Many are short-lived and will remain valid until March 31, 2021.

Currently, policies are issued with waiting periods of three and a half months, six and a half months, and nine and a half months.

Read further to find the difference between Corona Kavach and Corona Rakshak’s policies here, we will try to provide covid-19 health insurance assistance.

Many insurance companies have formulated their Corona Kavach and Corona Rakshak policies based on guidelines issued by the Insurance Regulatory and Development Authority of India (IRDA). These standard health insurance policies will cover the cost of the treatment of coronavirus disease. Many are short-lived and will remain valid until March 31, 2021.

Currently, policies are issued with waiting periods of three and a half months, six and a half months, and nine and a half months.

Read further to find the difference between Corona Kavach and Corona Rakshak’s policies here.

Policy Type

• The Corona Kavach Policy is an indefinite type of plan where hospital bills are reimbursed up to the sum insured, subject to terms and conditions.
• The Corona Rakshak policy is a benefit-based scheme where the insured is paid 100 percent of the sum assured if he is hospitalized as per the terms and conditions of the policy.

Minimum Hospitalization Requirement

• The Corona Kavach policy will be activated only if hospitalized for at least 24 hours. Regardless of the number of days in the hospital for the first 24 hours, the actual medical expenses up to the maximum insured amount will be paid to the insured person.
• In the case of Corona Rakshak, this policy will be activated only when the policyholder is hospitalized for 72 hours.

Policy Proposals

• The Corona Rakshak policy is offered by the insurer as a compulsory cover to individuals and families on an indemnity basis. Here, i.e. in the indemnity policy, the claim is paid according to the actual hospital bills.
• The Corona Rakshak is offered based on benefit as an optional policy to be insured. Under the benefit-based policy, the policyholder is paid the entire sum insured based on the terms of the policy.

Number of people covered by a single policy

• The Corona Kavach policy will cover both individuals as well as families.
• Only individuals will be covered by the policy of Corona Rakshak.

Coverage of the Policies

• In the case of the Corona Kavach policy, the minimum sum Rs 50,000 is insured and the maximum limit is Rs 5 lakh.
• On the other hand, in the case of the Corona Rakshak policy, the minimum sum Rs 50,000 is insured and the maximum is Rs 2.5 lakh.

Availability of additional benefits

• Corona Kavach policy provides ‘hospital daily cash’ benefits. This add-on pays a maximum of 0.5 percent of the sum insured per day during the policy period for each insured member for 24 hours of hospitalization for the treatment of Covid-19 on a positive diagnosis of the disease.
• On the other hand, since the Corona Rakshak Policy is a defined benefit plan, no such facility is available.

The following tables show the difference between Corona Kavach and Corona Rakshak policy

The premium rate is different for Corona Kavach and Corona Rakshak

Although both types of policies are standard products, the policy premium will vary across insurers. This is because insurance companies have to pay the price of the product according to their understanding of underwriting. Naval Goel, CEO, and Founder of PolicyX.com stated that the claim ratio is determined by the insurer based on their expectations of the ratio, etc. which are based on certain assumptions. “The insurer’s actuarial team makes different forecasts and therefore insurance companies’ premium rates may vary. Pricing also varies depending on the quality of services offered by all insurers,” said Goel.

Other types of coronavirus insurance cover

In addition to the Corona Kavach Policy and Corona Rakshak Policy in the last few months, several insurers have also launched other Corona Virus insurance covers. These are ‘need-based insurance’ covers filed with IRDAI under the regulator’s Sandbox Regulations. According to IRDA Sandbox Regulations Insurers are allowed to sell the policy on a pilot basis for a limited period. These policies provide low coverage between Rs 50,000 and Rs 1 lakh Sum insured. For example, Star Novel Coronavirus Insurance policy is available under insurance options of Rs 21,000 and Rs 42,000 at a premium of 459 plus GST and 918 plus GST respectively.

As a policyholder, you should know that the insurer can withdraw these required products at any time, as it is not found to be unviable to continue. Therefore, if the existing coronavirus insurance policy is taken out, the insurer must provide a new alternate insurance policy to the insured.

The insurer can change the specific exclusions of the disease for the new alternative policy. However, the insured person can either go with the new alternative policy or reject it and purchase a new health policy.

Difference between Corona Rakshak, Kavach, and other coronavirus policies

• Corona Rakshak and Kavach’s policies have common policy terms in insurance companies. However, in the case of other coronavirus policies, policy terms may vary from insurer to insurer.
• Corona Kavach and Rakshak policies are issued for a specific period and cannot be withdrawn until March 2021 unless IRDAI permits it. However, the insurer may withdraw the need-based policies at any time, if It is found unacceptable to continue.

• Maximum and minimum sum insured has been fixed in case of Kavach and Rakshak policies. While the maximum and minimum sum insured may be different for other coronavirus policies. 

Policies issued by digital payment firms, financial services firms

Many digital payment firms, financial services firms have also started their coronavirus hospitalization insurance policies in collaboration with various insurance companies.

STAY SAFE. WEAR A MASK.