Covid-19 continues to be a big threat for human beings. In India, Covid-19 cases are gradually increasing in some states keeping the threat of a third wave menacingly alive. If you have not yet purchased any Covid-specific health insurance plan, there is good news for you. Insurance Regulatory and Development Authority of India (Irdai) has extended the timeline for renewal and issuance of new policies. Now one can buy these standard short-term policies till March 31, 2022. The insurers of our country offer two standard Covid-19 specific products- Corona Kavach and Corona Rakshak. Both health insurance products are based on IRDAI guidelines. But before selecting one, you have to know their difference.
Currently, the two policies can be purchased for a tenure of three and half months, six and half months and nine and half months including a waiting period of 15 days. The minimum age for buying the policies is 18 years and maximum 65 years.
As both the policies are for Covid-19, it is important to understand the difference before taking any final decision.
Corona Kavach is an indemnity-based plan where the hospital bill gets reimbursed up to the sum insured limit as per policy terms and conditions. On the other hand, Corona Rakshak is a fixed benefit plan where 100% sum insured is paid to the insured.
Under Corona Kavach policy, the sum insured will apply only when there is a hospitalisation of a minimum period of 24 hours.
But, in the case of Corona Rakshak, it requires hospitalisation for a minimum continuous period of 72 hours.
The insurance companies offer Corona Kavach Policy as a mandatory cover to families and individuals on an indemnity basis wherein the claim is paid as per the actual expenses incurred.
The Corona Rakshak plan is offered as an optional policy on a benefits basis. Under the plan, the insurer pays the full sum assured amount as per the policy terms and conditions.
The Corona Kavach policy covers both individuals and families. On the other hand, the Corona Rakshak is an individual plan and covers only one person.
For Corona Kavach policy, the minimum sum insured amount is Rs 50,000, and the maximum coverage you can get is Rs 5 lakh. Corona Rakshak offers a minimum and maximum coverage of Rs 50,000 and Rs 2.5 lakh, respectively.
Although both Corona Kavach and Corona Rakshak plans are standard policies, the premium varies from insurer to insurer. But, according to market experts, you can find either of the policies with a premium ranging from Rs 523 to Rs 1,200.
If you have a Corona Kavach health insurance policy, you can purchase ‘Hospital daily cash’ rider cover. With the Corona Rakshak policy, there are no additional benefits.
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