Corona Rakshak Insurance: All You Need to Know

Kizzy D. Blount
Irdai gives go ahead to 29 insurers to market Corona Kavach policy - The  Economic Times

Since the COVID-19 pandemic has grasped the world, many have been living in a state of constant fear. Even though a nationwide vaccination drive has begun, not everyone has been able to get access to it. Also, for those who have been vaccinated, there is still a possibility to contract the coronavirus.

In this environment, it is a good idea to have financial security for medical expenses. The Corona Rakshak Policy, named as per the directives of IRDAI, is an insurance policy that has been designed specifically for that purpose. With a corona policy, one can be assured of getting the financial help needed to cover the medical expenses incurred for the cure.

Features of the Corona Rakshak insurance policy

The policy provides a lump sum payout to help take care of the medical expenses that are incurred to cure a COVID-19 infection. 

Here are some important features of the policy, and the costs that it will cover. 

  1. Coverage amount

The coverage amount of the corona insurance policy ranges from Rs 50,000 to Rs 2,50,000.

  1. Waiting period

The waiting period for the insurance policy is just 15 days. This means that if the policyholder gets diagnose with COVID-19 infection within 15 days of buying the policy, they will not be eligible to get the payout.

  1. Lump-sum payout

If the policyholder gets diagnosed with COVID-19 after the waiting period, they will receive the complete amount of the sum insured.

However, the only condition for receiving the payout is that they have to be diagnosed by a government authorised diagnosis centre and are required to be hospitalised for a minimum of 72 continuous hours.

  1. No pre-medical screening

A person does not have to undergo medical screening before purchasing a Corona Rakshak policy.

  1. No deductibles

The policy does not have any deductibles, meaning, the policyholder will receive the complete amount that was promised to them at the time of purchasing.

  1. Single premium payment term

When investing in the policy, the person has the option to pay all their premiums at one go, avoiding the worries of periodic payments.

  1. Age limit

The corona rakshak policy does have an age limit. Only people from 18 – 65 years of age are eligible to get insured under this policy.

  1. Rules on restricted travel

If a person insured under this policy travels to a country that has been put under travel restrictions by the Government of India, they will not receive the insurance cover.

Benefits of the Corona Rakshak insurance policy

The policy has been created to give a good amount of financial security to the policyholder, to help them battle the medical expenses brought on by COVID-19. The benefits offered by this policy are:

  1. Hospitalisation charges

One of the things that people have been worried about during the pandemic is the possibility of having to bear the exorbitant hospitalisation charges in case of a COVID-19 infection. The insurance policy eases the burden in that matter, as it covers those hospitalisation charges.

  1. Compensation for a loss of income

Contracting COVID-19 can certainly bring a lot of hardships. Besides the medical expenses, there can also be a loss of income due to the health condition. The Corona Rakshak policy has a benefit for such a scenario. It offers a payout to compensate for the loss of income of the policyholder, caused due to contracting COVID-19.

  1. Tax benefits

Under section 80D of the Income Tax Act of 1961, the policyholder will be eligible for tax benefits for paying the premiums of this policy.

  1. Low-cost premium

Since this policy has been designed to battle the tough times brought on by the pandemic, it comes with an affordable premium, hence further reducing the economic burden to battle the possible medical expenses.

  1. Complete payout

As mentioned in one of the features, the policy gives a 100% payout without any deductible charges if the policyholder gets diagnosed with COVID-19. Also, they will receive the entire lump-sum amount that was promised at the time of purchase.

  1. Short waiting period

The waiting period for the policy is just 15 days. Seeing the daily number of cases and the spread of infection, the short duration of the waiting period becomes a necessary benefit.

With the pandemic still active in the world, it is advisable to stay financially protected with the Corona Rakshak policy. It will take care of your and your family’s financial security, preventing you from the economic burden that could be brought on by the infection. You can use a COVID insurance premium calculator, which will tell you the premium you will be paying according to your policy terms. With the calculator, it will be easy to decide which policy term suits you the best.

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