New standard health insurance policy to cover COVID-19 treatment

Even as India registered its largest one-day peak in COVID-19 cases on 1 April 2020, the Insurance Regulatory and Development Authority of India (IRDAI) cleared the standard health insurance policy that would also cover the cost of hospitalisation treatment on account of the pandemic.

In a press release issued on 1 April, IRDAI gave clearance to 29 general and health Insurance companies to market the standard health insurance product ‘Arogya Sanjeevani’.

IRDAI member (non-life) T L Alamelu said, “The general public may now avail of this standard health insurance policy by approaching any of the 29 insurance companies.” She said, “Arogya Sanjeevani offered by the general and health insurers also covers the hospitalisation treatment costs of COVID–19.”

The press release also clarified that the indemnity-based health insurance products that cover the treatment costs of hospitalisation offered by all Indian general and health insurance companies will also cover the costs of hospitalisation treatment on account of COVID-19.

Mrs Alamelu said, “All insurers have been advised by the authority vide circular of 30 March 2020 to expedite settlement of COVID-19-related claims. They have also been advised to display frequently asked questions by the customers on COVID-19 claims on their respective websites.”

In March this year IRDAI had made it mandatory for health insurers to introduce a standard product that offers basic coverage. Arogya Sanjeevani is a standard, uniform product and for a first-time buyer of health insurance, this would be a good choice, as the product will be the same, regardless of the company offering it.

Arogya Sanjeevani offers a coverage of between $1,300 to $6,540 and will be for a period of one year. It will be available in multiples of $650.

Source: Asia Insurance Review