Over 1.28 cr lives covered under Corona Kavach, Corona Rakshak: IRDAI chairman

As many as 1.28 crore lives were covered under corona-specific insurance products in the country, said Subhash Chandra Khuntia, chairman, Insurance Regulatory and Development Authority of India (IRDAI). So far, more than ₹1,000 crore premium were collected from these insurance policies, IRDAI chairman added. Khuntia was addressing a virtual conference during the annual summit of the Insurance Brokers Association of India (IBAI).

To fight against coronavirus, the insurance regulator earlier instructed the companies to introduce standard health insurance products. Inaugurated in July, Corona Kavach is an indemnity plan that will cover all the hospitalisation expenses. The cost of treatment for any co-morbid condition, including pre-existing co-morbid conditions along with the treatment for COVID-19, will be covered under this policy. The sum insured in Corona Kavach policy ranges from ₹50,000 to ₹5 lakh. The tenure of the policy varies from three-and-a-half months, six-and-a-half months and nine-and-a-half months.

Corona Rakshak is a fixed benefit plan in which if a policyholder is diagnosed with COVID-19 and hospitalised for three days, a fixed amount (which is sum insured) will be paid by the insurance companies. For Corona Rakshak Policy, the minimum sum insured would be ₹50,000 and the maximum limit is set at ₹2.5 lakh. Its tenure will range from three-and-a-half months to nine-and-a-half months.

"Under Corona Kavach, which is the standard product (introduced during the pandemic), 42 lakh lives have been protected; while 5.36 lakh lives have been protected through Corona Rakshak," Khuntia added. "And, from all kinds of corona-specific products, a total of 1.28 crore lives have been covered with a total premium of more than ₹1,000 crore," Khuntia said.

IRDAI chief said there is a huge opportunity for the brokers and insurers in the country after the pandemic and it has made people realise the need to get insured. Khuntia said there should be more focus on tier-II, -III and -IV cities now as the growth will come from these areas.

"I have suggested them (brokers) that they should look at tier-II, -III, -IV towns and possibly the rural areas, because the higher economic growth will come from those areas now," he said.

Source: Live Mint