IRDAI’s standard coronavirus insurance policy set to be a fixed benefit cover

Mumbai: The country’s insurance regulator has directed all general and health insurers to offer a standard coronavirus cover by June. While the final details of the proposed cover is still in works, the Insurance Regulatory and Development Authority (IRDAI) has come up with draft guidelines.

As per the terms devised by the regulator, the standard covid-19 cover will be a benefit-based product offering a 100% lumpsum if a policyholder is tested positive and hospitalised. The minimum sum assured for the product will be Rs 50,000 and it can go upto a maximum of Rs 5 lakh.

“In view of the global pandemic Covid-19, the Authority has decided to mandate all general and health insurers to offer a standard individual Benefit Based COVID-19 health insurance product,” according to the draft, a copy of which has been reviewed by ET.” ..benefit equal to 100% of the Sum Insured shall be payable on positive diagnosis…resulting in hospitalization. The diagnosis has to be confirmed by authorized centers as declared by the Ministry of Health and Family Welfare, Government of India.”

Insurers have been asked to make the product “compulsorily available” before June 30
th, 2020.

Additionally, the said policy can also include an add-on quarantine cover where a policyholder would be paid 50% of the sum assured for a premium specified by the insurer. A person aware of the matter said that details are being finalised.

For a policyholder tested positive within 15 days of the purchase of the cover would not be liable for a payout of the claim by insurer, guidelines specify.

Insurers would be able to price the product as per their assessment. There would be, however, no geographic or zonal pricing mechanism. “The premium under this product shall be pan India basis and no geographic location / zone-based pricing is allowed,” as per the guidelines.

Anybody between the age of 18 and 65 would be able to apply for the policy with lifelong renewability as per the draft guidelines, as pe the draft guidelines.

Furthermore, the product would be available with monthly, quarterly, half-yearly or annual payment option. For yearly payments, a grace period of 30 days will be allowed, while for other modes, a grace period of 15 days will be allowed.

The insurance regulator were earlier mulling over an indemnity based standard cover, however, disparity in pricing across hospitals and high costs of consumables caused for the regulator the change the terms for an earlier draft submitted to the General Insurance Council, the person cited said.

[Source – Economic Times]


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