Insurance companies provide Covid-19 focused plans

Some plans include those with international travel history and even waive the 30-day wait period

India’s Covid-19 tally is now over 700, with a death toll that stands at 19, at the time of writing. As the government has ordered a pan-India lockdown for 21 days, insurance providers are assuring customers that those affected by the virus will be covered under their insurance plans.

“The insurance will cover for a death caused by the virus of an existing policy-holder. Whereas in the case of fresh applicants or the applications in process, the insurer might consider your current health and medical conditions to determine the premiums apart from holding or rejecting an application if an applicant has already contracted the virus,” says Kumar, an LIC insurance agent.

A few insurance companies have approached the IRDA for an approval of issuing a separate policy for Covid-19.

Star Health and Allied Insurance Company are offering Star Novel Coronavirus Insurance Policy — a product that provides lump sum benefit to the insured, aged between 18 to 65 years, who is hospitalised and diagnosed positive with Covid-19. This recently launched plan can be bought online, without pre-medical screenings. It is also made available for anybody with an international travel history.

According to Religare insurance agent Anmol Pandey, fresh policy-holders will receive insurance benefits after the stipulated 30-day activation period, in accordance with the Insurance Regulation and Development Authority (IRDA) guidelines. Many service providers began including the coronavirus under their Critical Illness plans after the first cases in India were confirmed, he added.

Companies such as HDFC Ergo cover the virus under pre-existing plans, said agent Assad Farooq.

However, these policies only provide insurance covers to those hospitalised and not those who are quarantined, he further explained. The policy has two options, with premiums of Rs 459 and Rs 918, respectively.

Meanwhile, SBI life insurance has extended the March renewal dues by one month, owing to the current situation. Several other major insurance providers have rolled out cover plans to tackle the Covid-19 outbreak.

ICICI Lombard has launched a Covid-19 Protection Cover — in group insurance mode — which pays 100 per cent of the insured sum on the event of diagnosis. Persons between the ages of 18-75 years can claim this policy, unless diagnosed prior to the inception date or within the 14-day wait period. Lombard’s policy also excludes cases of international travel post-December 31, 2019. The policy can be purchased for Rs 149.

An insurance plan under Edelweiss Health covers hospitalisation due to Covid-19 and provides cover to those quarantined at specific, government-identified facilities.

In a first, the group has sought and received permission from the IRDA to waive the activation period of 30 days. Insurance groups have also initiated plans that allow group insurance for companies and pre-existing organisations. Edelweiss provides a Group Total product for small businesses and start-ups, which is customisable by employers for their employees, with premiums that begin at Rs 50. Similarly, Religare provides a cover of Rs 5 lakh at a premium of Rs 250.

However, these policies are inapplicable to workers in the informal sector, leaving them vulnerable. An insurance scheme for the poor called the ‘Ayushman Bharat Pradhan Mantri Jan Arogya Yojana’ under the National Health Authority (NHA), has been instructed to tighten their protocol and provide health packages for the financially weaker sections of society.

Currently, government hospitals across the country have been the sole centres for treating the patients affected by the pandemic. Many private hospitals have now been enlisted to assist as the number of cases is set to increase in the next couple of days.

According to reports, private hospitals have agreed to treat economically backward patients at subsidised or government-mandated rates.