Two colleagues find themselves discussing about the various insurance options that are available in the market to cover for Covid-19 specific risks.

Raj: Hey, I just read today that IRDAI is extending the availability of two Covid-specific policies, Corona Kavach and Corona Rakshak till March 31, 2022.

Rohit: Okay. I’m not sure about the details of the two policies but I remember that they were marketed quiet aggressively in our society last year.

Raj: Both are standard policies with very little difference in benefits across insurers. While Kavach is an indemnity policy that covers hospitalization charges upon admission for at least 24 hours, Rakshak is a benefit policy where the insured gets 100 per cent of the sum insured on diagnosis and the policy terminates thereafter.

Rohit: So, Corona Rakshak is like a one-time payment on diagnosis, while Kavach is like a regular health policy where you expenses are covered up to the limit of the sum insured. But what are the incremental advantages of Corona Kavach over a normal health policy which also covers hospitalisation ?

Raj: The basic premise when these policies were introduced last year was to provide an affordable and quick cover to people without sufficient health coverage in the midst of a raging pandemic. But if one has a comprehensive health insurance which covers out-patient, home care and other charges, Corona Kavach may not be needed. Corona Rakshak can be considered for additional cover or if out-patient charges are not covered in your existing health policy.

Rohit: Yes that is a marked advantage. My health policy requires hospitalisation to kick in.

Raj: Also, since the two are standardized products, one need not put extra effort in reading the fine print which is a must before buying insurance policies in general. With Corona Kavach, hospitalisation charges even include charges for most consumables like PPE kit and gloves in addition to room rent, ICU, medical practitioner fees, operation theatres and even ambulance service up to ₹2,000.

What’s more, even pre-hospitalisation medical charges up to 15 days and post-hospitalisation medical charges for 30 days are also covered. The claim amount will be determined by the sum insured. The minimum sum insured available under both the policies is ₹50,000. The maximum can go up to ₹5,00,000 for Corona Kavach and ₹2,50,000 for Corona Rakshak.

Rohit: They seem to be fairly comprehensive in their coverage.

Raj: Apart from covering incurred expenses, optional covers in Corona Kavach provide daily cash of 0.5 per cent of sum insured for a period of 15 days to cover for daily expenses.

Rohit: Is there any waiting period like with other health policies?

Raj: Yes there is a 15-day waiting period under both the policies. The policies can be availed for a period of 105 days (3.5 months), 195 days (6.5 months) and 285 days (9.5 months) and can be renewed to ensure the benefits continue. People between the ages of 18 to 66 can buy these two products.

Rohit: Well, even with an increasing rate of vaccination any cover for Covid does offer peace of mind against any residual risk of infection.

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