Covid19 Insurance Protection

Indian insurance market finally has an individual insurance policy that is specifically tailored to cover both Covid-19 related deaths and Covid-19 treatment costs. So far, the Indian insurance market has had the Corona Kavach and Corona Rakshak health insurance policies, which covered treatment costs for Covid patients-the first being a standard indemnity-based policy that paid hospital expenses and the latter a fixed-benefit scheme where payment of the lump sum was triggered by Corona-led hospitalisation for at least 72 hours. 

Edelweiss Tokio Life Insurance’s last week launched the Covid Shield+ - an individual life insurance product with a one-year tenure. The policy is a fixed-benefit plan for which eligibility conditions do not include a medical test. The policy is also single premium, and unlike the other two policies has several features. 

First, it does provide a cover for deaths not caused by Covid-19. However, the sum in this case is quite small-just 1.25 times the premium paid. The primary benefit arises from the cover for Covid 19 deaths, which ranges from Rs 25 lakh to Rs 50 lakh, with a waiting period of 30 days. The policy can be taken by people between 18 and 65 years with premiums as low as Rs 5,500 in some cases. 

The policy provides substantial cover for Covid-19 treatment too. For instance, if the policyholder needs Intensive Care or High Dependency Unit treatment for over 24 hours, the treatment cover is triggered and the policyholder can get 40 per cent of the Covid-19 death cover. If the Covid-19 enhanced cover is Rs 25 lakh, the policyholder will be paid 40 per cent or Rs 10 lakh. 

If a death occurs within 24 hours of admission to the ICU or HDU, then the policy will payout the enhanced benefit and the basic cover. If the death occurs after 24 hours after admission to ICU or HDU, the policyholder will get the enhanced benefit, basic cover and, in addition, 40 per cent of the enhanced benefit to help with hospital treatment. The same will apply in case the policyholder contracts Covid, is treated in the ICU or HDU and survives, but later dies due to another cause.

Covid-safe investment - Edelweiss Tokio Life Insurance’s Covid Shield + is a fixed-benefit plan for which eligibility conditions do not include a medical test. The policy is also set to be a single premium