Corona Kavach is an individual and a family insurance policy that was launched on July 10, 2020, and offered by both general and health insurers.
The term of the policy is from three-and-a-half months to nine-and-a-half months, with the maximum sum insured amount at ₹ 5 lakh.
Cases of corona-virus are increasing day by day, so in this pandemic situation on Tuesday 21st July 2020, the IRDA (Insurance Regulatory and Development Authority of India) allowed health insurers to offer ‘Corona Kavach’ as a standard group insurance policy to help the public, private sector companies and other business entities to provide insurance cover to their employees.
According to the insurance companies, the individual short-term Corona Kavach health indemnity policy has evoked a good response after its launch on 10th July 2020. All 30 insurers have started offering the policy.
As per the IRDA, all terms and conditions of the standard policy will be the same as that for the Corona Kavach policy for individuals which has already been launched by health insurance companies.
In also addition, as per the IRDA insurers are allowed to use the standard product name for the group policy after adding the word “group”, provided all terms and conditions as applicable to the standard individual policy remain the same except premium rate and specification on the operation of group policy.
The Insurance Regulatory and Development Authority of India (IRDAI) said in a circular that “the standard group policy is expected to be useful to various private and public establishments for covering the COVID-19 related medical needs of their employees.”
IRDA also said that the “the group policy can provide protection to a large number of employees engaged in manufacturing, services, SMEs, MSMEs, logistics sector, migrant workers and bring peace of mind to them, their family members and the employers and the group policy will also be useful for various categories of frontline workers as groups. In case the group consists entirely of doctors, nurses, or healthcare workers, a discount of 5 % will also be available as a mark of recognition of their contribution in fighting the society’s battle against COVID-19.”
The regulator has also directed all insurers to engage with their policyholders to disseminate information on precautions to be taken by them to protect themselves from infection of COVID-19.