COVID Kavach Vs Rakshak: Should I Get A COVID-Specific Insurance?

Premium, benefits, sum insured and all other details about COVID-19 only insurance schemes here. 

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As protection against the novel coronavirus, the Insurance Regulatory and Development Authority of India (IRDAI) had earlier in July announced two standard Covid-specific plans — Covid Kavach and Covid Rakshak.

The insurance regulator has allowed 29 general and health Insurance companies to market the policy. But what is the premium and benefits of these COVID-specific policies? Who is eligible to buy them? Should you even buy one. Read on.

What is the Corona Kavach and Corona Rakshak policy?

Both Corona Kavach and Corona Rakshak policies are health insurance plans solely meant for COVID-19 related hospital expenses.

These are short-term plan health insurance scheme, specifically designed for the pandemic. One does not have to continue paying premium for a lifetime, in this case.

What is the sum insured under Corona Kavach and Corona Rakshak?

The minimum sum insured under the Corona Kavach policy will be ₹50,000 and the maximum sum insured will be ₹5 lakh. This can be done in the multiples of ₹50,000.

For the Corona Rakshak policy, minimum sum insured is ₹50,000 and the maximum limit shall be ₹2.5 lakh.

Is there a basic difference between the two policies?

Yes. Corona Kavach ensures that the cost of treatment is reimbursed. On the other hand, Corona Rakshak makes sure that the 100 percent sum insured is paid to the policy holder.

Under the Corona Rakshak, once the policy holder tests positive for COVID-19 and has to be hospitalised for a minimum of 72 hours, the entire amount insured is paid in lump-sum.

This money can be used to cover cost of treatment or be used in place for monetary loss of the infected person during the period. However, under Corona Kavach there is no lump sum amount paid.

Who can buy these COVID-only health insurance scheme?

  • Any person between 18 to 65 years of age is eligible to buy both the schemes
  • However, Corona Rakshak can be bought only on individual basis. One person can buy only one Corona Rakshak policy
  • Parents can buy the Corona Kavach policy for dependent children between 3 months and 25 years of age
  • This policy can be availed for self, spouse, parents, parents-in-law as well

Is there a waiting period?

There will be a waiting period of 15 days – during which no claim will be accepted. This means that people who have tested positive for COVID-19 cannot get the insurance post diagnosis.

What kind of expenses will Corona Kavach cover?

  • Hospital expenses on diagnosis of COVID-19 on indemnity basis
  • Treatment of any co-morbid condition triggered by coronavirus
  • Pre-hospitalisation expenses for 15 days and post hospitalisation expenses for 30 days

What if the patient is COVID positive but is suggested home quarantine? Does Corona Kavach cover the expenses?

Yes, the ailing person's expenses are covered for up to 14 days after the COVID-19 positive diagnosis.

What about other expenses such as Ambulance cost, PPE kits etc?

The cost of ambulance will be covered. The amount paid for oxygen cylinders, operation theater, medicines, PPE kits, and gloves will be covered only if the policyholder is hospitalised for a minimum of 24 hours.

Expenses for ICU, if incurred, will also be covered.

Can I buy the COVID-only insurance schemes if I already have a health insurance?

Yes, you can buy these policies even if you already have existing an health insurance plan. However, since most health insurance policies now cover COVID-19 expenses, it depends on how these policies will benefit you on an individual level.

At the outset, the Corona Kavach and Corona Rakshak aim to cater to the people who are either first-time insurance buyers or are unable to afford a comprehensive health insurance cover.

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