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IRDAI has allowed insurance companies to sell short term policies linked to coronavirus

As a step to offer better coverage to the policy holders, the insurance regulatory and development Authority of India or IRDAI has introduced several changes in the previous regulations to deal with the and make that has affected the country badly.

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As a step to cure the same, the regulator has now given certain permits to both life and general insurers. They can now offer short term policies that will be specifically linked to coronavirus or covid-19. It believes that the short term policies covering the virus treatment is the need of the hour. According to the new framework, the insurers can now sell health policies with a minimum term of 3 months and a maximum of 11 months. To make sure that the benefits reach everybody, IRDAI has drafted certain guidelines tu to all the general and health insurance companies which makes it compulsory for them to offer standard indemnity and fixed benefit plans for covid-19.

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Even though, all health insurance plans cover hospitalization it is quite practical and relevant to offer coronavirus-specific cover and protection. These will be offered within a waiting period of 15 days as against the general 30 days waiting period in the normal cases.

However, health insurance perquisites such as migration, portability and lifelong renewability will not be supported by this short-term covid-19 policy. The covid-19 specific products on offer can be issued on an indemnity basis or a fixed benefit basis while these products can be offered on a fixed benefit basis only buy the life insurers.

 

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