COVID-19 Protection.

COVID-19 Health Insurance

The concept of Insurance dates to ancient times and has a prominent mention in Kautilya's Arthaśāstra (अर्थशास्त्र ). Kautilya stated that Insurance is a pooling of resources and distribution in a disaster like epidemics, famine, flood, and fire. Later during the 17th century, it was rediscovered in Lloyd's Coffee House, England. In independent India, based on Malhotra Committee, during the year 1999, an autonomous body "Insurance Regulatory and Development Authority (IRDA)" was formed. While the health insurance came to India in the form of Central Government Health Insurance Scheme mainly for government and state employees, it was in 1986 when the first health insurance product, "Mediclaim", was launched for private-sector employees.

With each passing day, good health continues to be on top of everyone's wish list. The intensity of the 2nd wave of the pandemic has made us relook at life. Apart from dealing with the Covid symptoms and infection, one needs to worry about the cost of treatment in hospitalization. There is already enough going around in our daily lives. The rising expenses, job loss, salary cuts, non-performing business, poor returns on bank FD's, and highly volatile market conditions have added to an indefinite future. We need to know which Covid health insurance would help us in the current scenario. Without proper health insurance, you would be risking the savings, which may directly impact household finances.

Before we step into the selection of the insurance products, here are some facts :

• Did you know that over 9 Lakh Covid related claims have been settled as of 20 April 2021 for ₹8642 Cr?
• The Government of India (GoI) and the Insurance Regulator (IRDAI) have mandated that cashless treatment be given to eligible policy holding Covid patients at networked and temporary hospitals

The two unique short-term insurance products are Corona Kavach and Corona Rakshak. There has been an extension available for the purchase of these policies till September 30, 2021. Since these are short-term plans, one need not pay premiums for a lifetime. Interestingly, the adverse reactions due to the Covid vaccine too is part of the Corona policies.

• The Corona Kavach policy is an indemnity-type plan where the hospital bill gets reimbursed up to the sum insured limit subject to terms and conditions.
• The Corona Rakshak policy is a benefit-based plan where a 100 percent sum insured is paid to the insured if he/she gets hospitalized as per policy terms and conditions.

The key differences are given below :

Below is the snapshot of approximate Premiums for various age group           

• Up to 25000 for individuals below 60 years.
• An additional tax benefit of 50000 if your parents are above 60 years.
• Up to 1 Lakh in case individual and dependent parents are both above 60 years.

Tip:

1. Make sure you check if your existing health policy allows for cashless claims. Your insurer would settle the bills directly with the hospital in a cashless claim.
2. In case of a reimbursement claim, you will need to settle the bills in full with the hospital. Later, you should submit the invoices by completing the claim formalities, and the insurance company will verify your claim before transferring the amount to your bank account directly.
3. If one wants to enhance the existing scope of coverage, it may be worthwhile considering the COVID-specific health policies.