Policyholders cheer extension of timeline for Covid policies

• Follow

Covid-19 has become a way of life. With new variants coming to the fore it seems that the virus is here to stay. In this context, the Insurance Regulatory and Development Authority of India (IRDAI) has extended the timeline for renewal and issuance of new policies. It is a welcome step as one can now buy these standard short-term policies till March 31, 2022.

While the regulator has extended the timeline, the disease-specific policy does not cover treatment costs for other diseases. They are meant to cover Covid-related expenses only ranging from homecare treatment to the cost of PPE. These policies are also reasonably priced given the wide coverage they offer. The insurers, however, are considering raising of premiums of these policies. When these policies were launched in 2020 insurers didn’t have enough data to support the pricing. But because of huge claims seen during the second wave of the pandemic insurers have started talking about increasing the premium rates of insurance policies.

Having said that, there is also a need to revise the term of these policies, as these are short term policies with the tenure of 3.5, 6.5 and 9.5 years. The annual term will save policyholders from the hassle of renewing these policies multiple times in a year. For the extensive coverage, however, it is advisable to buy a comprehensive health insurance policy as the first layer of protection. Corona specific policies could be bought as a second level for keeping your loved ones safe from Covid-19.

In another move, the Centre is considering increasing the stipend from Rs 2,000 to Rs 4,000 for Covid orphans. The second wave of the pandemic left many children without parents and/or guardians, a burden they are completely unprepared to shoulder. While no amount of grief can erase the pain of losing parents, but some financial protection can help them to grow up relatively comfortably. The increase in the stipend amount should be a proper step towards financial rehabilitation for those who lost their loved ones.