Policyholders can now opt for renewal, migration and portability of their standard Covid covers:IRDAI
In respect of Corona Kavach individual policies, insurers have the choice to offer migration to any other indemnity based health insurance product offered by them as per the option exercised by the policyholder. These short term policies are permitted to be renewed till 31st March,2021.
The insurance regulator IRDAI has allowed insurers the choice to facilitate renewal, migration and portability, as may be applicable, for the COVID specific standard health products -Corona Rakshak Policy, Corona Kavach Policy” and Group Corona Kavach policy.
In respect of Corona Kavach individual policies, insurers have the choice to offer migration to any other indemnity based health insurance product offered by them as per the option exercised by the policyholder.
These short term policies are permitted to be renewed till 31st March,2021.
‘Corona Kavach’ and ‘Corona Rakshak’ policies of any tenure may be renewed for further terms of three and half months, six and half months or nine and half months as per the option exercised by the policyholder.
Renewals, can be done before the expiry of the existing policy contract and will be subject to the underwriting policy of the insurer..
Where policy is renewed, additional waiting period of 15 days shall not be imposed and the coverage will be continued seamlessly, said IRDAI.
During renewal, sum insured may be allowed to be changed by the policyholder. For any increase in the sum insured, the waiting period shall start afresh only for the enhanced portion of the sum insured.
In respect of Corona Kavach Group policies, insurers have the choice to provide migration to the members insured to any other individual indemnity based health policy at the point of exit of the member insured from the group policy or the cessation of coverage of the underlying group policy.
Where migration is allowed, the accrued gains of waiting period served in the existing Corona Kavach policy (Individual/Group) will be protected in respect of coverage for Covid-19, in the migrated policy.
General and Health Insurers are permitted to allow portability of Corona Kavach (individual) policy from one insurer to another. The accrued gains of waiting period served in the existing Corona Kavach policy ll be protected in respect of coverage of Covid-19, by the porting-in insurer.
Where migration/portability from the Corona Kavach policy (Group/Individual, as applicable) is allowed by the insurers, such migration/portability to any other comprehensive health insurance policy shall be allowed, till the end of policy period of the existing Corona Kavach policy.
“.This is a welcome move as the Covid-19 vaccine is yet to come out and the purpose of these policies is to mainly cover the treatment costs against immediate health risks that people face due to the pandemic. Since its launch, the Covid-19 specific health policies have gained really good traction mainly due it's short term coverage been looked at immediately,'' said Gurdeep Singh Batra, head - Retail Underwriting, Bajaj Allianz General Insurance.
With this development, insurers will work towards safeguarding policyholders against the Covid-19 health risks, however, at the same time such insuring population eventually should opts for comprehensive health insurance policies, after realizing the important role that health insurance plays in times of such exigencies and future complications, he said. .