It may be cheaper to buy a health, life insurance cover now as an increase of 10 to 20 percent is expected. But which plan should you opt for, Corona Kavach or Corona Rakshak?
- The IRDAI mandates health insurers to offer short-term health insurance plans like Corona Rakshak and Corona Kavach.
- Apart from buying Covid-19 health insurance plans, it is also important to have a Mediclaim insurance policy.
- Persons recovering from Covid-19 might find it difficult to get health, life insurance instantly.
- One will have to be careful while choosing a health policy keeping in mind the type of reimbursement by the provider vis-a-vis the plan.
Insurance or health insurance, more specifically, has been a touchy subject for all of us in the past year. Whether it is buying an insurance policy or topping up an existing one, the entire issue felt overwhelming. Kapil Mehta from Secure now recently spoke on the issue in a podcast. A few excerpts from the talk:
In the current scenario, the usual three to five lakhs of insurance is not adequate for a family anymore.
It would be a wise decision to invest in mediclaim insurance policies with upto twenty-five to thirty lakhs with an option to top up with supplement plans. Term insurance is also a great idea with the increase in mortality rates. However, there has also been a rise in the Covid-19 specific policies by insurance companies.
There are mainly three types of Covid-19 specific insurance plans:
- Corona Cover: This works best if you are looking to cover your hospital bills, and a typical Corona Cover insurance of upto a lakh and a half would be ideal.
- Corona Rakshak: Corona Rakshak is an excellent choice to cover a bill that would require you to pay for RT-PCR lab tests and the Rapid Antigen and typically covers bills from fifty thousand to two lakhs.
- Covid Group Insurance: The group plan works best if you and a few family members or close acquaintances are looking to get covered by COVID challenges.
Essential to buy a Mediclaim policy
It is also essential to buy a mediclaim insurance policy apart from the Covid plans. It would be ideal for getting a basic mediclaim health insurance policy and wrapping it up with a reasonable sum assured. While insurance policies are easy to go ahead with for a healthy person/ family, it can get challenging for families/ persons with any pre-existing conditions. In such cases, it would be wise to buy Covid-19 plans.
The advantage of having a mediclaim health insurance is numerous, especially when there is a chronic ailment. But getting health insurance is a good idea whether there is an issue or not. For those who have had a Covid-19 mediclaim plan, it would be wiser to renew it because most insurance companies offering Covid plans are prone to raise the price. Most mediclaim policies are supposed to be renewed for a lifelong period. However, that is not the same case with the Covid plans. It is crucial to regularly top up the usual mediclaim plan since Covid survivors also have to deal with the cooling-off period of one to three months.
Watch: Corona Kavach or Corona Rakshak which health insurance cover should you go for?
There is a lot of ambiguity on both the providers and policyholders. While a cooling-off period of three months seems unfair, it is crucial to understand that Covid survivors, in some cases, may take more than six months of duration. However, in the current scenario, a three-month cooling-off period seems like a fair bargain to both parties. For Covid survivors with no insurance, it would be wise to wait and complete the cooling period before buying term insurance. It is essential to buy a policy and lock it since the rates may increase with mortality rates.
Insurance companies previously paid upto 80 percent of the claimed amount, whereas with the higher number of claims, it is only upto 60 percent. However, a few specific Covid plans have a higher settlement. It would be wise to opt for regular health insurance where it is easier to claim reimbursements. There is also tremendous pressure on hospitals where the Government has limited upto charging fifteen thousand per day. However, the original charges range upto twenty-five thousand. In this scenario, the out-of-pocket amount is covered by the Covid insurance claims.
There are two types of claims, cashless and reimbursements. It is wiser to opt for cashless since it comes in handy if there is a hospitalization. With the rising number of cases, there has been a problem in procuring hospital beds for everyone infected, leading to home-treated issues. There is a clause in the policy which is called “domiciliary.” The Domiciliary clause comes into effect where there is no hospital available. The patient is not in a condition to travel, or the doctors have advised on non – hospitalization. Then, the insurance will cover the cost. The domiciliary claim usually is restricted to one to two lakhs which means the out-of-pocket payment works much higher.
Plan Your Health Plan Accordingly
While opting for any Covid-specific policies, it is crucial to be careful with the clauses that include home quarantine, or you may be stuck with a policy that does not help you in your need of the hour. While the General Insurance Council has published data regarding cashless insurance claims, there is much more work to be done both by the providers and the intermediaries. Working out a more stable price with longer-term plans ( for a few years) and scaling up in addressing grievances would be a welcome change not only for the regulators but for all the parties involved.