Corona Kavach & Rakshak Health Insurance Plans

In view of the global pandemic Covid 19, the IRDA had earlier mandated all Insurance companies to come up with a Covid Standard Health Insurance Policy.

As per the IRDA directives – Life, non-life and standalone health insurers are going to offer short term health insurance policies, especially dedicated to covering the treatment cost of coronavirus from July 10, 2020.

The Insurance companies have launched two types of Covid Health Insurance Plans;

1. Corona Rakshak &
2. Corona Kavach

In this post, let us understand – What are the features of Corona Rakshak and Corona Kavach Policies? Corona Rakhak Vs Corona Kavach Plans. Should you buy any of these covid-19 standard health insurance plan?

Corona Kavach Health Insurance plan – Features

The Non-life and Standalone health insurance companies offer Corona Kavach Policy. This is an indemnity based health insurance product that will cover the treatment cost (actual) of hospitalization.

Important features of Corona Kavach Plan are;

• Minimum Sum Assured is Rs 50,000.
• Maximum Sum Assured under Covid Kavach plan is Rs 5 lakh.
• Minimum Entry Age : 18 years for principal insured
• Maximum Entry Age : 65 years
• The benefit shall be payable maximum up to 15 days during a policy period in respect of every insured person.
• It covers hospitalization costs for the entire family.
  • Family consists of the proposer and any one or more of the family members as mentioned below:
    • Legally wedded spouse.
    • Parents and Parents-in-law (or)
    • Dependent Children (i.e. natural or legally adopted), between the day 1 of age to 25 years. If the child above 18 years of age is financially independent, he or she shall be ineligible for coverage.
• Covid Standard Health Policy shall be offered with a policy term of three and half months (3 ½ months), six and half months (6 ½ months) and nine and half months (9 ½ months) including waiting period. There will be no ‘renewal’ of matured policies.
• In case, home-based covid treatment is advised then also the health insurance claim(s) can be submitted. Home care treatment of up to 14 days is covered under this type of health insurance.
  • In case the insured intends to avail the services of non-network provider, claim shall be subject to reimbursement, a prior approval from the Insurer needs to be taken before availing such services.
• The health insurance benefit covers the following – (if prescribed by the treating medical practitioner and is related to treatment of COVID)
  • Diagnostic tests undergone at home or at diagnostics centre. 
  • Medicines prescribed in writing.
  • Consultation charges of the medical practitioner.
  • Nursing charges related to medical staff.
  • Medical procedures limited to parenteral administration of medicines.
  • Cost of Pulse oximeter, Oxygen cylinder and Nebulizer.
• Optional Cover Sub-limits : The Insurance Company will pay 0.5% of sum insured per day for each 24 hours of continuous hospitalization for treatment of Covid, for up to a maximum of 15 days during hospitalization.

Corona Kavach Insurance Plan Premium Chart

Below are some indicative premium quotes of Corona Kavach Plan for Sum Assured of Rs 5 lakh with Policy Tenure of 9.5 months (285 days) ;

Corona Rakshak Health Insurance plan – Features

All insurance companies, be they Life, health or non-life, can offer Corona Rakshak Policy which is a benefit based policy that pays fixed cost to a policyholder if he/she suffers from Coronavirus.

Important features of Corona Rakshak medical insurance Plan are;

• It is a benefit based policy with a fixed Sum Assured.
• Minimum Sum Assured is Rs 50,000.
• Maximum Sum Assured under Covid Rakshak plan is Rs 2.5 lakh.
• Under this policy, the insurance company will pay a lump sum amount, which is the sum insured, if the policyholder is hospitalized for a minimum of 72 hours after testing COVID-19 positive.
• Once the entire amount is paid out, the policy will cease to exist.
• The available policy tenures are 3.5, 6.5 and 9.5 months payable with a single premium.

Corona Kavach Vs Corona Rakshak

Below are the key differences between Corona Rakshak and Corona Kavach Policies;

Should you buy a Corona Standard Health Insurance Plan?

You may consider my below views and suggestions before buying any of these Corona Standard health insurance plans;

• If you have any existing comprehensive health insurance plan, you may ignore buying these.
  • IRDA has confirmed that all existing medical insurance plans provide cover for Covid-19 treatment.
  • But, note that your regular health insurance plan may not cover expenses towards PPE kits, masks, gloves and other consumables. Also, it may not cover Ayush / Home-based treatment.
• If you are young and do not have any health insurance cover, it’s high time you buy a comprehensive (regular) health insurance plan.
  • In case, you are young and married, can consider buying a Family Floater Plan.
  • If you can not afford to buy a regular plan with high cover, can consider buying short term plans like – Corona Kavach / Corona Rakshak immediately. If you have a family, Corona Kavach is a better option.
• In case, you are a middle-aged person and do not have any health insurance cover, consider buying a Corona Kavach Plan for self and spouse (if married) for Rs 5 lakh coverage.
• A Senior citizen who is 65+ years and if not eligible to buy any of these plans, can consider a regular Senior Citizen specific plans instead.
• Kindly note that these standard health insurance plans come with a waiting period. It can be around 15 days. (Within 15 days of purchase of covid standard health insurance, the customers do not receive any claim benefit from the insurer.)

While a particular illness specific plans like Corona Rakshak or Kavach has their own importance but they does not decrease the need of a comprehensive health insurance plan.

Given the inflating medical costs, advisable to buy a regular medical insurance plan and also a Super Top up plan asap.

Continue reading :

1. Are you Saving for your Cash, Care & Crash Funds?
2. Difference Between Individual (Personal) & Employer based Health Insurance Plans – Pros & Cons
3. Latest Health Insurance Incurred Claims Ratio 2018-19 Data | Top Health Insurance Companies List
4. Health Insurance Tax Deduction FY 2019-20 / AY 2020-21 | Income Tax Benefits u/s 80D

Kindly note that Relakhs.com is not associated with any of the above mentioned Insurance companies. This post is for information purposes only and we do not endorse any specific insurer. Please refer to product brochures and policy wordings documents before buying a Health Insurance Plan.

(Post first published on : 11-July-2020)