Insurers can sell and renew standard Corona policies

Hyderabad: With Covid-19 cases rising rapidly again, insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI), on Wednesday allowed insurers to continue to offer as well as renew standard Corona policies.

In June 2020, the insurance watchdog had issued guidelines for insurance companies to roll out standard Covid-19 policies -- Corona Kavach and Corona Rakshak – by July 10, 2020, for those between 18-65 years of age. Insurers were permitted to offer these policies till March 31, 2021.

However, now insurers will be able offer and renew these short-term Covid-19 specific health policies up to September 30, 2021.


Till January, around 1.28 crore standard Covid-19 policies with a total premium of over Rs 1,000 crore were sold by insurers.

As per the norms, the Corona Kavach and Corona Rakshak policies were allowed to be renewed for further terms of three-and-half-months, six-and-half-months or nine-and-half-months, as per the policyholder’s preference, till March 31, 2021.

Now with the new IRDAI directive, policyholders will be able to renew these policies till September this year.

In fact, in October last year, the regulator had also issued norms allowing porting as well as migration of standard Corona policies to comprehensive health policies.

While the Corona Kavach is an indemnity-based product, Corona Rakshak is a benefit-based product. While benefit policies pay a fixed amount following a claim, indemnity plans provide either cashless or reimbursement facility for the money spent on medical treatment.

Under Corona Kavach, apart from hospitalisation expenses for a minimum of 24 hours, home healthcare, Ayush treatment and pre as well as post hospitalisation costs is being covered.

Under Corona Rakshak, a lumpsum benefit equal to 100% of the sum insured is payable on positive diagnosis of coronavirus, requiring hospitalization for a minimum continuous period of 72 hours.