Corona Kavach Vs Corona Rakshak: 7 differences between COVID-19 health insurance plans

Both these policies should not be considered as a substitute for a comprehensive health cover.

IRDAI had recently mandated insurance companies to offer short-term health plans that will cover hospitalisation expenses related to the treatment of COVID-19. This will help individuals buy specific health cover for meeting hospital costs due to coronavirus. Both Corona Kavach Policy and Corona Rakshak Policy are health insurance plans meant for Covid-19 related hospital expenses.

There are at least two benefits of such exclusive COVID-19 health plans:

i) The no-claim bonus on existing health insurance plans is not immediately impacted and

ii) One need not continue to pay premium till lifetime as they are short-term plans.

The biggest difference is that in Corona Kavach Policy only the hospital bill gets reimbursed as it is an indemnity-based plan but in Corona Rakshak Policy, the 100 per cent of the sum insured is paid to the policyholder as it a benefit-based plan.

But, before you buy them, know 7 differences between the two plans.

Who offers them

Corona Kavach Policy, the COVID Standard Health Policy need to be compulsorily offered by all general and health insurance companies and life insurance companies cannot offer them. To buy Corona Rakshak Policy, one may approach any insurer including the life insurance company.

Availability

Corona Kavach Policy is to being offered by 29 insurers from July 10. As far as Corona Rakshak Policy, the standard benefit-based health policy is concerned, the IRDAI had asked insurers to launch them preferably before July 10, however, it remains to be seen when they start launching them.

Minimum and maximum

The minimum sum insured for Corona Kavach Policy is Rs 50,000 and the maximum is Rs 5 lakh while for the Corona Rakshak Policy, the minimum sum insured is Rs. 50,000 and the maximum limit shall be Rs.2.5 lakh.

Hospitalisation

In the Corona Kavach Policy, the base coverage or the sum insured will apply only when there is a hospitalization of a minimum period of 24 hours. The hospital expense up to the sum insured will be paid as claim by the insurer irrespective of the days of stay in the hospital. But, in the case of Corona Rakshak Policy, it requires hospitalization for a minimum continuous period of 72 hours.

Nature of policy

The Corona Kavach Policy shall have One Basic mandatory cover and One Optional Cover. The premium payable towards this Optional Cover will have to be paid separately so as to enable policyholders to choose and pay based on the need. The Base Cover of Corona Kavach Policy will be offered on Indemnity basis whereas Optional Cover shall be made available on Benefit Basis.

In an indemnity cover, the claim is paid as per the hospital bills while in a Benefit cover, the entire sum insured is paid to the policyholder.

“While Corona Kavach is an indemnity based plan that reimburses policyholders based on medical expenses incurred for treatment of COVID, Corona Rakshak is a benefit plan that offers fixed compensation upon the patient being diagnosed with COVID and being hospitalized for 72 hours, irrespective of the medical expenses incurred, ” says Shanai Ghosh, Executive Director and CEO, Edelweiss General insurance.

Type of policy

One can buy Corona Kavach both on an individual basis and on Family Floater basis but Corona Rakshak is offered on an individual basis only and hence no Family Floater option is available in it.

Optional benefit

The Corona Kavach Policy gives one the option to add ‘Hospital Daily Cash’ cover. Under it, the insurer will pay 0.5 per cent of the sum insured per day for every 24 hours of continuous hospitalization for treatment of COVID following an admissible hospitalization claim under this policy. The benefit shall be payable maximum up to 15 days during a policy period. However, there is no such feature in Corona Rakshak policy as it is entirely a benefit-based plan.

What to do

In both policies, co-morbidity arising out of treatment in Covid-19 is also covered, so it is better to keep a high cover. Being a short plan and the on-going incidence of the virus, its better to choose a long er term and high sum assured. But do not ever consider it as a substitute for a regular health insurance plan. “The policy should not be considered as a substitute for a comprehensive health cover. In case you do not have basic health cover, this policy can help provide specific cover with regards to any medical expenses towards the treatment of COVID-19, at an affordable price. In case you already have a health insurance policy, you can purchase this policy as a supplementary cover,” adds Shanai.