IRDAI’s standard coronavirus insurance policy should be fixed benefit coverage

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Bombay: The country’s insurance regulator has ordered all general and health insurers to offer standard coronavirus coverage by June. While final details of the proposed coverage are still pending, the Insurance Regulatory and Development Authority (IRDAI) has developed draft guidelines.

Under terms defined by the regulator, standard covid-19 coverage will be a benefit-based product offering a 100% flat rate if an insured test positive and hospitalized. The minimum sum insured for the product will be Rs 50,000 and it can go up to a maximum of Rs 5 lakh.

“In view of the global Covid-19 pandemic, the Authority has decided to oblige all general and health insurers to offer a standard individual COVID-19 health insurance product based on benefits”, according to the project, including one copy has been reviewed by ET. »..A benefit equal to 100% of the Sum Insured is payable in the event of a positive diagnosis… resulting in hospitalization. The diagnosis must be confirmed by authorized centers, as declared by the Department of Health and Family Welfare of the Government of India. ”

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

In addition, said policy may also include additional quarantine coverage where a policyholder would be paid 50% of the sum insured for a premium specified by the insurer. A person familiar with the matter said details were being finalized.

Because an insured tested positive within 15 days of purchasing coverage would not be liable for payment of the claim by the insurer, specify the guidelines.

Insurers would be able to price the product based on their valuation. However, there would be no geographic or zonal pricing mechanism. “The premium under this product must be based on India and no pricing by location / area is allowed,” as per the guidelines.

Anyone between the ages of 18 and 65 would be able to apply for the policy with life renewal under the draft guidelines, under the draft guidelines.

Additionally, the product would be available with a monthly, quarterly, semi-annual or annual payment option. For annual 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 was previously considering standard indemnity-based coverage, however, the disparity in prices between hospitals and high consumable costs caused the regulator to change the terms of an earlier draft submitted to the General Insurance Council, said the person quoted.

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