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What is the difference between Corona Kavach and Health Insurance?
15 October 2020
The IRDAI has made it clear that general insurance companies in India are mandated to offer short-term health insurance plans specific to COVID-19 specific, sometimes referred to as ‘coronavirus insurance.’ These plans are seen in the form of the Corona Kavach plans and the Corona Rakshak plans. Both types of health insurance policies protect policyholders against the healthcare costs incurred from being infected by the novel coronavirus.
Here are some key differences between the Corona Kavach policy and traditional health insurance policies.
1. Who is covered
A traditional health insurance policy can have a slew of variations. You can get individual health insurance plans that cover a single policyholder or opt for family health insurance plans which can cover all family members under a single policy. There also exist health insurance specific to elderly individuals or plans for critical illnesses.
In the Corona Kavach policy, you have two variations of the policy — individual Corona Kavach plans and family Corona Kavach plans. Traditional health insurance offers more comprehensive coverage, and Corona Kavach is a short-term introduction by insurance companies to help individuals combat the healthcare costs associated with the onslaught of the novel coronavirus in 2020 for affordable premiums.
2. Type of Payout
Another difference is the type of coverage offered by a traditional plan versus a Corona Kavach plan. Health insurance (particularly a critical illness policy) can be a fixed benefit in their approach or can be a classic indemnity plans. The difference is that a fixed benefit plan pays out the entire sum assured on meeting the triggering criteria like diagnosis of specified illness or hospitalisation for a defined period due to specified illness.
It cannot be reused after one has filed a health insurance claim for their fixed benefit plan. Traditional health insurance is an indemnity plan which pays the hospitalisation bill or reimburses you for your treatment cost. Corona Kavach is also an indemnity plan. It can be reused until the Sum Insured is completely depleted or the policy lapses.
3. What is Covered
Traditional health insurance offers coverage against all kinds of illnesses from minor flu to a serious cardiac illness. Not only a slew of ailments but also the particular instances of medical aid that are covered include both inpatient and outpatient care, pregnancy and childbirth, prescription drug coverage, doctors’ services, mental health services, and more, as per policy terms.
4. Additional Coverage Options
With traditional health insurance plans, hospital expenses are covered provided one remains admitted for 24 hours, which remains the same for Corona Kavach plans. However, for a fixed payout benefit under the corona Kavach plan, policyholders can go for an alternative coverage option known as ‘Hospital Daily Cash.’ As per this cover, one can receive 0.5% of their Sum Insured each day for every 24 hours they remain hospitalized, provided they do not exceed the limit of being hospitalized for more than 15 days.
The coverage in traditional health insurance is a lot more comprehensive. You have more flexibility in the add on options available with traditional health insurance. Some insurers offer a fixed income variant, while others offer traditional indemnity plans. Other add ons include a personal accident cover. This policy will apply to situations in which the policyholder has been wounded in an accident and requires extensive medical care, which may include surgery. Another add on is critical illness rider which includes coverage against certain cancers, paralysis, and other chronic illnesses.
Whether you choose traditional health insurance or a coronavirus specific plan, ensure you are carefully comparing policy documents before doing so. Read more about the tips for buying health insurance for coronavirus here