Insurance companies have launched few products – especially to cover COVID Risk. There’s a lot of confusion Corona Kavach versus Corona Rakshak – let’s try to compare these policies.
Corona Insurance
A health insurance policy provides financial cover against medical expenditure. We are all at risk of getting infected by the coronavirus.
The good news is that Russia launched the vaccine & many other companies are in the final stage but for Indians, the issue is the population size. Not sure how long it will take to reach the bottom of the pyramid.
A person getting affected by the virus may have to incur one or more of the following –
- Hospitalization charges
- Self-quarantine expenses
- Imaging costs
- Expenditure related to PPE kits, medicines and doctors’ consultation
- Other costs depending on the virus’s effects on the patient such as ventilator costs, blood transfusion, or treatment for related ailments.
It is, therefore, important for one to have financial security against the pandemic.
Check- How to select Health Insurance Cover
Difference between Corona Kavach & Corona Rakshak
The IRDAI has mandated that all general and health insurance companies have to provide health covers against coronavirus. Therefore two plans have been launched –
- Corona Kavach
- Coronal Rakshak
The main difference is that in Kavach Policy your hospital bill gets settled but in Rakshak Policy, the entire sum insured is paid to the insurance holder.
Read on to find out the details, similarities, and differences between the two –
Corona Kavach |
Corona Rakshak |
| An indemnity policy with
Minimum sum assured – ₹50,000 and Maximum sum assured – ₹5,00,000. |
A standard benefit-based health policy.
An individual can acquire the policy for Minimum sum assured – ₹50,000 and Maximum sum assured – ₹2,50,000. |
| The hospital expenses up to the sum insured can be claimed if there is a minimum of 24 hours of hospitalization or 14 day home care. | It offers fixed compensation when the patient is diagnosed with COVID irrespective of whether expenses have been incurred or the extent of expenses.
100% of the sum assured is paid to the insured.
The benefit can be claimed if there is hospitalization for a minimum continuous period of 72 hours. |
| It covers hospital expenses, home care treatment, PPE kits, treatment for related ailments, and pre-existing ailments like diabetes, and ambulance charges.
Pre-hospitalization expenses up to 15 days and post-hospitalization up to 30 days are covered. |
The entire sum is paid to the insured if they are tested positive for the coronavirus in a government-approved care unit. |
| It can be bought as an individual policy or a family floater policy that can cover all family members. | It is available only for individuals. |
| Tenure – 3.5, 6.5 or 9.5 months | Tenure – 3.5, 6.5 or 9.5 months |
| Waiting period – 15 days | Waiting period – 15 days |
| Eligibility – Any individual between the ages of 18-65 years.
It can be availed for self, spouse, parents, parents-in-law, and dependent children up to the age of 25 years. |
Eligibility – Any individual between the ages of 18-65 years. |
| Exclusions – Diagnostic evaluation, dietary supplements without prescription, daycare expenses, vaccination, and tests from centers not authorized by the government. | Exclusions – Tests from centers not authorized by the government and home care. |
The premium of Kavach & Rakshak COVID Policies
Let us look at the premium charged by different insurance companies for a 40-year-old individual for both policies –
Policy |
Company |
Tenure 6.5 months |
Tenure 3.5 months |
|
Corona Kavach |
Bajaj Allianz
|
Sum assured – ₹5,00,000
Premium – ₹2,216
|
Sum assured – ₹1,00,000
Premium – ₹1,110
|
|
Max Bupa/HDFC Ergo
|
Sum assured – ₹5,00,000
Premium – ₹2,608
|
Sum assured – ₹1,00,000
Premium – ₹822
|
|
|
Corona Rakshak |
Star Health
|
Sum assured – ₹2,50,000
Premium – ₹4,615 |
Sum assured – ₹1,00,000
Premium – ₹1,538 |
|
Future Generali
|
Sum assured – ₹2,50,000
Premium – ₹795
|
Sum assured – ₹1,00,000
Premium – ₹339
|
*Taxes excluded
Read – How much health insurance I need
Who Should consider buying Corona policies
It is always better to have a more comprehensive health insurance policy than those covering a few ailments. Most health insurance plans cover COVID-19 illnesses based on their terms.
If your insurance cover is low and you are not going to increase it soon, you can buy the COVID-19 plan as a supplement to your original health cover.
If you do not have a health policy and do not want to buy one now, the Corona Kavach/ Corona Rakshak policy is good.
If your family is low on insurance cover, the Corona Kavach plan is a good buy.
If your income is going to be adversely affected because of the pandemic, you can go for the Corona Rakshak plan.
If you think you are at high risk of getting affected by the virus (e.g. doctors, essential services professional), it might be a good idea to buy some insurance against it.
Do remember to incorporate a comprehensive health insurance policy in your financial plan to ensure self and family members financially against medical conditions. A comprehensive insurance cover is one that covers many ailments, offers medical check-up, medical consultation, and cashless treatment. Choose a health care provider who has a high settlement ratio and minimum waiting period.
If you have any questions related to Corona Kavach or Corona Rakshak polices – add in the comment sections.
Is there any extra benefit in taking carona kavach policy,
when the individual already have family floater comprehensive policy of 5 lacs, kindly advise
Hi Venu
These new policies provide support to those who do not have adequate cover or not have any medical cover and want to get protected from the expense incurred through Corona. However, in your case it is advisable to increase your current cover from 5 Lakh to 10 Lakh because this will not only protect your family from Corona but also from other medical emergencies or if due to any reasons you are not able to increase your current policy and you can opt for a TOP-UP plan.
I already have a Comprehensive Family Floater Health Insurance since 2017 for Rs. 15L from Star Health whcih is renewed every January. Is Corona Rakshak & Kavach included in my Comprehensive policy automatically or do I have to buy a new one? or do i have to inform them sine Corona was not there when i renewed the policy in January 2020.
Hi Reji
Now a days every Health Insurance Policy covers the cost incurred from hospitalization through Corona irrespective of when you have taken the policy. However, Corona Rakshak & Kavach is not included in your policy, you have to take them separately.
Though the Corona Kavach policy covers PPE kits, gloves, masks etc are there any restrictions on the number of kits or cost per kit reimbursable per day? Hospitals are charging anything between 5-20 kits per day! Will the policy settle the claims in full or will the policy holder will be asked to pay for the kits over and above a particular limit? Please clarify. Bajaj is saying that only 3 kits per day will be payable. How can they say that when there is no such restrictions in the policy conditions of the Corona Kavach policy.
Hi Suresh
As per the information we have, there is no capping on the usage of PPE per day and the expenses incurred is covered up to your Sum Assured.
Though the Corona Kavach policy covers PPE kits, gloves, masks etc are there any restrictions on the number of kits or cost per kit reimbursable per day? Hospitals are charging anything between 5-20 kits per day! Will the policy settle the claims in full or will the policy holder will be asked to pay for the kits over and above a particular limit? Please clarify.