Dr. Bhaskar Nath Biswal
‘Shield Yourself Against the Rising Medical Expenses due to Covid-19’. This is the slogan displayed on the website of an insurance company. This is about the new insurance policy it is offering, styled as ‘Corona Kavach’. In fact, all the 30 general and health insurance companies across the country are highlighting the need to purchase this policy on their websites after the mandate was given by the Insurance Regulatory Development Authority of India (IRDAI).
The treatment cost of the Covid-19 patients is leaving the general public stunned. It is beyond the reach of the common man. In government hospitals, treatment is given freely but the corporate hospitals are charging as high a Rs 25,000 to Rs 1,50,000 a day for patients. Some state governments caped the rates for Covid treatment in private hospitals. The Karnataka government fixed rates ranging from Rs 5,200 to Rs 25,000, depending on the condition and severity of the case. The Punjab government fixed the treatment cost from Rs 8,000 to Rs 18,000 on the basis of severity of the symptoms and the category of hospital. The Telangana government capped the fee for conducting a Covid-19 test in private lab at Rs 2,200 and the fee for treatment of patients in private hospitals from Rs 4,000 to Rs 9,000 a day. Apart from this, the cost of some antiviral injections is around Rs 40,000 to Rs 50,000; which will be charged separately.
These figures speak volumes about the financial burden on the family of patients admitted to these private hospitals. In order to overcome this risk, IRDAI has designed a common Covid-19 health insurance product, addressing basic health insurance needs of the people with common policy wording across the industry. IRDAI mandated the 30 general and health insurance companies to offer the Individual Covid Standard Health Policy, ‘Corona Kavach’.
On July 10, the authority issued clearance to these companies to market this policy. A day later, it issued another advisory, allowing a five percent discount in premium to Covid warriors like doctors, nurses and other healthcare workers as a token of recognition of their services in fighting the pandemic. Further, the authority released another press release on July 21, extending the coverage of ‘Corona Kavach’ policy to groups. The statement revealed that the group policy can provide protection to a large number of workers employed in manufacturing, services, MSMEs, SMEs, and migrant workers.
The basic features of the policy are that this is available on individual or family floater or group basis and that the base cover will be on indemnity basis(Covid hospitalisation cover) or optional cover on benefit basis (hospital, daily cash); a 15-day waiting period; three categories of time-period — three and a half months, six and half months and nine and half months’ waiting period; people between the age group of 18 to 65 years can avail the policy for themselves; spouse, parents, parents-in-law and dependent children up to the age of 25 can be covered; medical expenses of hospitalisation on diagnosis of Covid shall be admissible from 15 days prior to hospitalisation and 30 days post hospitalisation; cost of treatment incurred by the person on availing treatment at home on positive diagnosis up to 14 days per incident; ambulance charges `2,000 per hospitalisation; optional cover of hospital daily charges at 0.5 per cent of the sum insured per day, subject to a maximum of 15 days in a policy period for every insured member; any set up designated by the government as hospital for the treatment of Covid shall be considered as a hospital; a single premium policy; and any co-morbid condition triggered due to Covid 19 shall be covered during hospitalisation.
IRDAI has instructed all insurance companies to educate policyholders by disseminating information on the precautions to be taken by them to protect themselves from the infection.
This, in sum, is the right kind of health insurance policy introduced at the right time. Insurance companies should market it in the interest of the society at large, as Covid-19 is affecting the lives of millions, physically, mentally, and financially. The individual and family policies help in providing peace to the family members. When the lockdown restrictions are eased, business organisations will operate as usual and the group insurance will provide them necessary protection. As this is a new one, many of us are not aware of it.
Dr. Bhaskar Nath Biswal is head of department of Commerce, Nabarangpur College.
