Learning Center  /  

Category: Know Your Insurance Covers

COVID Insurance – Is it good to have one?

Considering certain facts will prompt us buying it as an additional cover.

COVID Insurance is a low cost niche cover introduced by few insurers specific to corona virus infection. Both Fixed Benefit and Indemnity policies are available.

Fixed Benefit: A lumpsum benefit amount varies from Rs.21,000 to Rs.2,00,000 based on the respective insurers’ plans.

Indemnity Policy: Under this policy, you can get cashless treatment in network hospitals up to Sum Insured.

Other Benefits*: Each insurer extends additional benefits unique to each other.  Following are the types of additional benefits:

  • Daily Cash for 10 days. Double for ICU
  • You can choose to add your family members
  • Covers job loss during the quarantine period of 15 days
  • Health assistance and ambulance aid
  • Co-morbidity cover

*The above additional covers are insurer specific. No insurer offers all the above benefits in their policy. Customers have to choose the insurer whose benefits best match their requirement.

Claim Requirements: To raise a claim, you have to provide test results showing positive for COVID and/ or treatment at a Government/ Military/ Government recognized/Insurer networked Hospital. The claim requirements and exclusions also will vary from insurer to insurer. It is advised to go through the coverage details before choosing the insurance cover.

Is it good to have a covid insurance cover?

It is good to have a COVID Insurance cover for various reasons specific to the current scenario.

Generally speaking, if you already have a health insurance cover for you and your family or if you are being covered as a part of your employer’s group health insurance cover, you don’t require having a COVID Insurance cover. Your existing personal health insurance or your employer’s health insurance usually covers all infectious diseases including COVID.

But, to give a specific answer to the above question, we need to consider some more facts, which will prompt buying this COVID insurance as an additional benefit.

  1. No Basic Health Insurance: If you and your family members are not yet covered by any health insurance, this is an essential cover to have at this point of time.
  2. Existing Sum Insured is not enough: If you have a health insurance cover, but you feel the Sum Insured may not be sufficient. This could be true in cases where your employer’s cover is not sufficient and you also have ailing/aged parents covered in the same policy.
    • Usually, Sum Insured is a family floater and if it is not sufficient and if you are availing claim for COVID, there is a possibility that your Sum Insured gets exhausted and you will not be able to claim anymore in the policy. In such cases, where you feel your SI may not be sufficient, it is good to have specific COVID Insurance for you and your family as the cost of the same is very minimal (Rs. 300 to 500).
    • Even if the treatments are carried out in Government Hospitals, there will always be some expenses related to your COVID treatment and this insurance will come handy for the same.
    • It is always good not to exhaust your basic health insurance cover for the sake of COVID treatment, when there is a specific cover for COVID.
    • The above could be true, as we have already got in to 2nd stage of Covid spread and vaccination is going to take a little time due to expected rush.