COVID insurance plan: Sum assured from Rs 1 lakh – Rs 5 lakh

Unlike other health insurance policies, which mostly covers hospitalisation expenses alone, the specialised cover is likely to include the cost of treatment during quarantine and payment of cash for incidental expenses.

On the insistence of the regulator, and directions issued by the apex body of non-life insurers – General Insurance Council – the insurance companies are working on a standardised insurance product for treatment, with sum assured ranging between Rs 1 lakh  and Rs 5 lakh.

The product needs to be offered mandatorily from June 15 onwards and the insurers have been given time till June 4 to come up with recommendations on the product, said sources aware of the development.

 

In view of disparity of claims for Covid treatment, recently, the Insurance Regulatory and Development Authority of India (IRDAI) asked the General Insurance Council (GI Council), to come up with ideas for standard cover for the pandemic.

While the council is yet to submit its views to the regulator, industry sources say insurers are proposing the cover for people in the age group of 18 to 65.

Unlike other health insurance policies, which mostly covers hospitalisation expenses alone, the specialised cover is likely to include the cost of treatment during quarantine and payment of cash for incidental expenses.

“The standard cover for covid 19 can have two add on covers — quarantine cover, and hospital daily cash.

“If the insured person is quarantined due to diagnosis or suspected infection of Covid-19 then the company will pay 1 per cent of sum insured per day subject to maximum up to Rs 3000/day,” the draft guidelines said which was reviewed by .

Similarly, the insurance company will pay 0.5 per cent of sum insured per day for every completed 24 hours of hospitalization for treatment of COVID-19 on positive diagnosis of disease.

Things like isolation of patients in hotels are not normally covered under the normal health policies.

Now, that covid demands such line of preventive measures, so Irdai has asked us to include such things in the standard covid product, said a public sector insurance executive.

According to the draft, room, boarding and nursing expenses will be capped at Rs 5,000 per day and costs of intensive care unit expenses will be capped at Rs 10,000 per day while ambulance charges will have a maximum limit of Rs 2,000 per hospitalisation.

A GI council official said, “The regulator wants to give more clarity to the…

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