The Insurance Regulatory and Development Authority of India (IRDAI) has on Tuesday allowed specific short-term health insurance policies for Covid-19.
Citing the prevailing conditions in the wake of the virus outbreak and the need to make insurance protection available to all sections of people, the insurance regulator said “health insurance policies providing specific cover to coronavirus is the need of the hour.’’
According to the guidelines, a short-term health policy provides cover for a minimum period of three months to a maximum of 11 months. “If the term of the policy is fixed for 12 months, it will not be considered as a short-term policy,’’ it said.
Optional covers that enhance the health insurance coverage are permitted to be offered for the same duration but no separate add-ons are permitted.
General insurers and health insurers are now allowed to offer both indemnity based and benefit based short term health cover. Life insurers, however, are permitted to offer only benefit based policies. They could be both individual and group products.
All insurers should file the short-term health cover products for due approval from IRDAI and launch them only after approval.