Changing the norms, insurance regulator IRDAI has allowed insurers to allow renewal, migration and portability for COVID specific standard health insurance products (i.e, “Corona Rakshak Policy”, “Corona Kavach Policy” and “Group Corona Kavach policy”) subject to a few guidelines.

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. Whereas, the Corona Rakshak policy is a benefit-based plan where 100% sum insured is paid to the insured if he/she gets hospitalised as per policy terms and conditions.

For renewal, ‘Corona Kavach’ and ‘Corona Rakshak’ policies of any tenure may now be renewed for further terms of three and half months (3 ½ months), six and half months (6 ½ months) or nine and half months (9 ½ months) as per the option exercised by the policyholder. The renewal shall be subject to the underwriting policy of the insurer. Do bear in mind that renewals, if any, have to be done before the expiry of the existing policy contract.

Where policy is renewed, the additional waiting period of 15 days shall not be imposed and the coverage shall be continued seamlessly, IRDAI said.

During renewal, sum insured may be allowed to be changed by the policyholder. For any increase in the sum insured, the waiting period shall start afresh only for the enhanced portion of the sum insured.

“Corona Kavach and Corona Rakshak policies are permitted to be renewed till 31st March, 2021 complying with clause 5 of Guidelines on introduction of short term health insurance policies providing coverage for COVID-19 disease,” IRDAI said in a circular dated October 13, 2020.

In case of migration, for Corona Kavach individual policies, insurers have the choice to offer migration to any other indemnity based health insurance product offered by them as per the option exercised by the policyholder.

“In respect of Corona Kavach Group policies, insurers have the choice to provide migration to the members insured to any other individual indemnity based health policy at the point of exit of the member insured from the group policy or the cessation of coverage of the underlying group policy,” IRDAI said.

Where migration is allowed, the accrued gains of waiting period served in the existing Corona Kavach policy (Individual/Group) shall be protected in respect of coverage for Covid-19, in the migrated policy.

General and Health Insurers have also been permitted to allow portability of Corona Kavach (individual) policy from one insurer to another. The accrued gains of waiting period served in the existing Corona Kavach policy shall be protected in respect of coverage of Covid-19, by the porting-in insurer, IRDAI said.

“Where migration/portability from the Corona Kavach policy (Group/Individual, as applicable) is allowed by the insurers, such migration/portability to any other comprehensive health insurance policy shall be allowed, till the end of policy period of the existing Corona Kavach policy,” the regulator added.

Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. Kumar is a financial journalist, with a functional experience of 15 years. He tracks mutual funds, insurance, pension, PMS, fixed income/debt and alternative investments markets closely. He has worked for The Times of India, The Hindu Business Line, Deccan Chronicle Group, DNA, and Value Research, among others, across different cities in India. He is deeply interested in marrying data insights with actionable opinion. He can be contacted at [email protected].

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