Tuesday, July 7, 2020

Insurance companies will launch a Short-Term Health policy for Corona



Amid rising cases of covid-19 in the country, regulator IRDAI on Tuesday allowed health and general insurance companies to offer short-term health insurance policies that would provide coverage against corona virus infection.

 He said in the circular that in the current corona virus epidemic, with the objective of providing insurance protection to people belonging to different classes, it is believed that the short-term health insurance policies that provide coverage for covid-19 are the time are needed.

The Insurance Regulatory and Development Authority of India said that according to this, all insurance companies (Life, Insurance and Health) have been allowed to offer covid-19 specific short-term health insurance policies within the guidelines.

According to the guidelines, the policy term will be in multiples of months between three months and eleven months. It has been said in the circular that this policy can be given to an individual or a group. These guidelines will be valid till March 31, 2021 until further notice is given to them. 

The regulator said in the circular that the covid-19 epidemic was considered to provide insurance cover to all sections of society. Health insurance policy for covid-19 disease is the need of the hour.


What are short-term health insurance policies?

According to the circular, a short-term health insurance policy refers to a mediclaim policy that is issued for a period of less than 12 months. These can be issued for at least three months and more than 11 months. If the policy is fixed for 12 months, then it will not be considered as a short-term policy. A policy of less than three months will not be allowed.


Offer can also be done as a group policy

The guidelines will be valid till 31 March 2021 for issuing short term policy. They can be extended further. According to the guidelines, a short term health policy means a health insurance policy contract that has been issued for a policy term of less than 12 months. Short term policies can be offered as individual or group policies.


Earlier in March, IRDAI asked general and health insurance companies to produce need-based products that cover the cost of treatment for corona virus disease.


What are the limitations?


Such policy has limitations. According to the circular, short-term health insurance policies will only cover Kovid-19. No further benefits will be available. Life-long renewal, migration and portability will not apply to these. The waiting period in the policy will not be more than 15 days.

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