IRDAI’s new Covid-19 cover likely to be priced at ₹600-3,000

Surabhi Mumbai | Updated on June 22, 2020

Expected to cover cost of consumables

In what could make treatment costs for Covid-19 more affordable, the IRDAI’s proposed standard health cover for the infection could have a premium anywhere between ₹600 and ₹3,000, depending on the sum insured.

“The premium could start at ₹600-1,400 per policy to about ₹2,000-3,000,” said an executive with a public sector general insurer.

Most health and general insurers are working out pricing for the proposed standard Covid-19 health cover, which will have a sum insured of ₹50,000-5 lakh.

“From July onwards, the new Covid cover product will be available. Pricing will be significantly lower than the normal product because it will be a single diseases cover. It is not meant to cover any other existing ailments,” said another executive with a private sector insurance company.

To be available by June 30

Most insurers are expected to file for the product in the coming days as it has to be available for consumers by June 30.

With the rising cases of Covid-19 and the high cost of treatment, the Insurance Regulatory and Development Authority of India (IRDAI) had asked standalone health insurers and general insurers to come out with a standard cover for the disease. An indemnity-based product, it would have a sum insured between ₹50,000 and ₹5 lakh and a one-year duration.

The cover would pay for the hospitalisation expense and would also include a benefit component wherein, upon the detection of the infection, the amount would be paid. It would have a waiting period of 15 days.

Cost of consumables

According to insurers, it would also, to some extent, take care of costs of consumables like masks and PPEs, the high costs of which have left many patients reeling.

“The new product will cover the cost of PPEs — IRDAI has said this categorically. It should help cover the difference in treatment. Further, it is an indemnity product, which will give a lump-sum amount up to the limit of sum insured,” one of the executives said, adding that insurers are already paying standard rates for these in case of existing policies.

Insurers also said that persons who have an existing health insurance policy do not need to go for the standard Covid-19 cover as they are already covered against the infection by their existing policies.

Hospitalisation expense and benefit part, expense on detection of disease is paid. The policy has a 15-day waiting period.

Published on June 22, 2020

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