AgenciesRelated
Mumbai: The Insurance Regulatory and Development Authority (Irdai) has allowed insurers to offer policyholders the choice to renew, migrate and port the coronavirus-specific health covers that were introduced first in June.
These standard health products, Corona Rakshak and Corona Kavach, currently have fixed tenures of just 3.5 months, 6.5 months or 9.5 months. "Policies of any tenure may be renewed for further terms …The renewal shall be subject to the underwriting policy of the insurer,” Irdai said Tuesday.
The move comes at a time when the high costs of treatment, low insurance coverage in India along with a massive increase in daily cases have resulted in financial distress for thousands of Indians getting hospitalized.
“This is a welcome move as the Covid-19 vaccine is yet to come out and the purpose of these policies is to mainly cover the treatment costs against immediate health risks that people face due to the pandemic,” said Gurdeep Singh Batra, Head - Retail Underwriting, Bajaj Allianz General Insurance.
Since its launch, the Covid-19 specific health policies have been popular among households looking for quick, and short-term health covers. According to Irdai chairman Subhash Kunthia, about 6 million such covers have been sold by September, speaking at a recent CII event.
The regulator’s move could also prompt policyholders to switch to more comprehensive health covers, says Amit Chhabra, Health Business Head, Policybazaar.
“Apart from renewing the existing policies, consumers who wish to switch to a compressive plan for overall protection along with cover for COVID-19. This move… will bring more and more people under insurance bracket as they will also be able to avail treatment for bigger illnesses like cancer, heart problems, accidents and many more," said Chhabra.
These standard health products, Corona Rakshak and Corona Kavach, currently have fixed tenures of just 3.5 months, 6.5 months or 9.5 months. "Policies of any tenure may be renewed for further terms …The renewal shall be subject to the underwriting policy of the insurer,” Irdai said Tuesday.
The move comes at a time when the high costs of treatment, low insurance coverage in India along with a massive increase in daily cases have resulted in financial distress for thousands of Indians getting hospitalized.
“This is a welcome move as the Covid-19 vaccine is yet to come out and the purpose of these policies is to mainly cover the treatment costs against immediate health risks that people face due to the pandemic,” said Gurdeep Singh Batra, Head - Retail Underwriting, Bajaj Allianz General Insurance.
Since its launch, the Covid-19 specific health policies have been popular among households looking for quick, and short-term health covers. According to Irdai chairman Subhash Kunthia, about 6 million such covers have been sold by September, speaking at a recent CII event.
The regulator’s move could also prompt policyholders to switch to more comprehensive health covers, says Amit Chhabra, Health Business Head, Policybazaar.
“Apart from renewing the existing policies, consumers who wish to switch to a compressive plan for overall protection along with cover for COVID-19. This move… will bring more and more people under insurance bracket as they will also be able to avail treatment for bigger illnesses like cancer, heart problems, accidents and many more," said Chhabra.
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