Who should buy Corona Kavach Policy

With the ever-rising number of Coronavirus cases across India touching an all-time high of 5.5 Million* on 22^nd September, the need of the hour is to maintain social distancing and opt for a health insurance policy that will support you if you do contract the disease.

Corona Kavach is an affordable health insurance policy that allows protection for an individual and their family members against the expenses of hospitalisation with respect to COVID-19 disease only. This health insurance policy kicks in from the day you test positive for COVID-19. An important aspect to keep in mind for Corona Kavach, however, is that there is a standard waiting period for this policy, which for most insurers is 30 days, but Niva Bupa has reduced this initial waiting period for Covid-19 to 15 days across all its indemnity plan, including Corona Kavach. 

Corona Kavach vs. Corona Rakshak

1. Reimbursement: In Corona Kavach policy, the hospital bills are either paid upfront by the insurer or reimbursed to the insured on submission of bills, whereas in Corona Rakshak policy the sum assured is paid entirely to the policyholder.

2. Where to get them: A Corona Kavach policy is a standard health insurance policy that can be offered by general health insurance companies and a life insurance company cannot offer the same. A Corona Rakshak policy can be offered by all insurers.

3.  Sum insured: A Corona Kavach policy has a sum insured ranging from Rs. 50,000 to Rs. 5 Lakhs, whereas a Corona Rakshak policy has a sum insured ranging from R. 50,000 to Rs. 2.5 Lakhs.

4. Hospitalisation: A Corona Kavach policy only covers hospitalisation beginning at a minimum of 24 hours whereas a Corona Rakshak needs hospitalisation for a minimum and continuous period of 72 hours.

5. Nature: Corona Kavach reimburses policyholders based on the medical expenses that accumulate for the treatment of COVID-19 whereas Corona Rakshak offers fixed compensation after being diagnosed and hospitalised for 72 hours.

6. Individual and Family Floater: Corona Kavach is offered on both individual and family floater types of health insurance policy, whereas Corona Rakshak is only for an individual.

It is important to know that the purpose of each of these health insurance policies is different. A Corona Kavach is aimed at providing financial aid for hospitalisation expenses, a Corona Rakshak policy is more of an income replacement.

Benefits of a Corona Kavach Policy

There are two obvious advantages of having an exclusive COVID-19 health insurance policy:

1)      Your existing health insurance plan’s no-claim bonus is not impacted when you use the Corona Kavach instead.

2)      It is a short-term plan, which doesn’t require you to pay a premium for a long duration of time.

3)      Corona Kavach has an option to add a “Hospital Daily Cash” cover. The insurer pays 0.5% of the sum insured for every 24 hours of continued hospitalisation that is required to treat COVID XE Variant.

4)      There’s no cap on a room rent and it covers hospitalisation, PPE kits, doctors’ fees etc.

5)      A regular health insurance needs a waiting period of 30 days whereas Corona Kavach need 15 days before the policy begins.

Corona Kavach Policy Cancellation

If there is any indication of misrepresentation or non-disclosure of information about the policyholder, or fraud of any kind, the health insurance company can cancel the policy with a notice period of seven days via written notice. This would mean that there would be no refund on the premium if cancellation on these grounds are claimed.

Corona Kavach Policy Exclusions

There are a few points to keep in mind while signing up for Corona Kavach, while it may vary from one insurer to another, these are a few standard situations that are not included in the policy:

1. Pre-existing diseases and their treatment
2. Travel to restricted countries
3. Diagnosis from an unapproved testing centre
4. Treatment or diagnosis from a centre outside India
5. Expenses accumulated from day care or OPD treatment
6. COVID- 19 diagnosis prior to the policy start date
7. Any supplements bought without a prescription
8. Treatments that are not proven to work or do not have enough medical documentation for evidence

Conclusion: Is Corona Kavach for You?

If your health insurance policy has a low sum insured along with room rent limitations, a Corona Kavach policy would of great benefit to you. Ideally, a Corona Kavach policy should not replace your health insurance policy but serve as an addition or it should be purchased by those who do not have any health insurance at all. It is affordable and addresses the need of the hour.