How Much COVID-19 Health Cover is Right for Treatment in India

India is currently at the no 2 spot for the most number of COVID cases and inching closer to the current number 1 spot holder USA. With no vaccination in sight yet, India is facing the inevitable. While the ratio of death to confirmed cases is still low in the country, it is giving little hope to the citizens. Moreover, treatment of COVID could take weeks or even months which could lead to huge medical bills. Let us look at what it costs to get treated for Covid-19 in India.

Covid-19 treatment could differ greatly based on various factors. While some state governments, such as Delhi and Haryana, have fixed the costs, the treatment is usually more expensive in metros as compared to tier II or tier III states. Moreover, there is a huge difference in the cost of private and public hospitals.However, with beds getting occupied in public hospitals and better facilities in private hospitals, they are fast becoming the preferred or the inevitable choice for most people, let us look at some of the cost estimates for the Covid-19 treatment in a private hospital. (as per the cap in some states)

• Isolation bed₹10, 000 per day
• ICU with a ventilator - ₹18,000 per day
• ICU without a ventilator is 15,000 per day

To understand this better, let’s assume a case where a person requires 10 days of hospitalisation out of which 5 days are spent in isolation bed, 3 days in ICU with ventilator and 2 days in ICU without a ventilator. The cost would be around:

However, this does not cover many types of costs which can increase the bill amount to a huge extent. Moreover, in many cases, hospitalisation required is for a few weeks, which could have a huge impact on the bill.Apart from the costs stated above, some of the key components of inflated hospital bills are:

1. PPE Kits
2. Doctors Consultation Charges
3. Cost of Consumables
4. Pharmacy Costs
5. Room rent
6. Diagnostic Tests

According to research, total hospital bills could range between ₹2.6 lakhs to 16 lakhs depending on the number of days and other factors.

Many insurance companies under the directive of IRDAI (Insurance Regulatory Development Authority of India) have come out with a COVID-specific health insurance policy to suit the specific needs of those suffering. Some of its salient features are;

1. Sum Insured up to Rs 5 lakh.
2. Short term plan with a period ranging between 3.5 months, 6.5 months, and 9.5 months.
3. A short waiting period of 15 - 30 days.

This policy can be bought as an individual policy or a family floater policy. While it usually comes with pre and post hospitalisation cover and other add-ons integrated, they are only for treating COVID-19.

While a Corona health insurance policy is a great option, it comes with certain limitations. Alternatively, people can opt for a regular health insurance plan and still get cover for the COVID treatment. The IRDAI has clarified that all comprehensive policies must cover covid-19 treatment cost as well. The question that naturally arises is which one is better.Let us look at some differences.

While a comprehensive health insurance policy should be the obvious choice for its wider range of benefits, you can opt for Covid-19 health cover if you cannot afford a comprehensive policy or if you have one with a low insured limit. However, whichever you choose, make sure you choose the right policy and check terms and conditions before purchasing. Only trust a reputable insurance company with a good claim settlement ratio.

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.