Corona Kavach/Rakshak or Health Insurance – Which is the Best For You?

Not long ago, the Insurance Regulatory and Development Authority of India (IRDAI) announced the guidelines for COVID-19 standard indemnity and benefit-based health insurance policies. The former kind of policies is made mandatory for all general and health insurance companies, while insurers can offer the latter from all categories. 

Following my previous article regarding Corona Kavach and Corona Rakshak policies, there have been multiple queries if an individual can purchase both the plans simultaneously. Also, individuals are unsure if they can buy Corona Kavach or Corona Rakshak policy alongside their existing health insurance policy. Here, we provide a detailed description of what is feasible and what is not.

Corona Kavach vs Corona Rakshak

Corona Kavach policy offers to pay for the hospitalisation and treatment if the policyholder happens to contract COVID-19 after the cooling period. Expenses, such as room rent, boarding, and nursing, will be covered by the policy. The policy only takes care of the treatment-related costs.

On the other hand, Corona Rakshak policy pays up to 100% of the sum insured if the policyholder tests COVID-19 positive as stated by a government-authorised and if he/she is hospitalised for a minimum of 72 hours. This policy is meant to replace the income lost during the treatment for COVID-19 and suits you if you are the sole breadwinner of the house.

Also Read: India’s Healthtech Market Expected to Hit $21 billion by 2025

Purchasing Corona Kavach/Rakshak Alongside a Health Insurance Policy

If you have a health insurance policy that includes a low room rent limit or a small sum insured, you can consider purchasing a Corona Kavach policy. In another case, if you do not have a regular health insurance policy, you are recommended to purchase Corona Kavach policy as it takes care of the hospitalisation and treatment for COVID-19.

When it comes Corona Rakshak, you can purchase the policy if you are the sole earner in the family and if your hospitalisation can impact the financial situation of your family. Go for Corona Rakshak if your only reason for purchasing a COVID-19 policy is Income replacement. Also, this policy can be a supplement to cover the expenses that a regular health insurance policy doesn’t cover, such as personal protection equipment (PPE). 

Purchasing Corona Kavach With an Existing Health Insurance

You may purchase Corona Kavach policy even when you have an existing health insurance policy. However, the claim settlement for hospitalisation may depend on the policies laid out by your health insurance provider.

Based on your financial condition and the availability of a health insurance policy, you are free to choose the right COVID-19 policy for you. Though IRDAI states most of the terms and conditions applicable to these policies, the pricing varies with insurers. Do thorough research before you purchase one. Keep in mind that individuals with pre-existing health conditions may find it challenging to purchase either of the policies. 

For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in

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