Does Standard Health Insurance Cover COVID-19?

The COVID-19 infection, since its onset in early 2020, has claimed a million lives worldwide. The disease, which originated from China, has spread to more than 184 countries. Even as scientists and medical experts are working hard to find a remedy to control the disease and a vaccine to stop spreading the virus, the general people are concerned about whether they will get insurance protection against the virus.As the number of positive cases is on the rise in India, the IRDA (Insurance Regulatory Development Authority of India) has directed all the health and general insurance companies in India to offer coverage for COVID-19 treatment under the standard policy for all. In its circular to the insurance companies in India, it is clearly stated that the insurer must cover the entire hospitalisation expenses for patients who are tested positive for the infection, including those in quarantine.So, if you are wondering, is coronavirus covered under health insurance policy ? The answer is YES! Remember, all insurance policies have certain coverage exclusions and sub-limits. You may not get coverage for the entire treatment expenses. Hence, it is better to opt for a Coronavirus-specific health insurance plan. The IRDA has directed all the insurers to launch special insurance plans for covering the coronavirus that will provide coverage up to Rs. 2.5 lakhs for hospitalisation expenses.The policy will have a standard name, ‘ Corona Rakshak Policy ,’ followed by the insurance company’s name. The key features of this standard coronavirus policy include:

• The Coronavirus-specific health insurance policy will enable the policyholders to take care of all the treatment expenses.
• All citizens of India up to the age of 65 years can purchase this policy and benefit from the coverage.
• It will be a standard policy with common wordings across all insurance companies.
• The policy will be issued for a specific term – three and half months, six and half months, and nine and half months (i.e., for 105 days, 195 days, and 285 days). You have the flexibility to choose the policy term as per your choice.
• The guidelines for the policy will remain valid until March 2021.

With the threat of the COVID-19 infection looming large, it is advisable to purchase an additional Coronavirus-specific healthcare plan to get maximum protection against the treatment expenses.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.