The rate at which Covid-19 has pervaded in the country has already gone through the roof and there is no indication that the curve will flatten soon. The pandemic is not restricted only to the health sector as there has been a tremendous impact of nationwide lockdown on the economy. As a result, people have been hit by the double whammy of disease and the dearth of funds. All these factors have created an element of fear among the people,  and having adequate health insurance is the need of the hour.

COVID Specific Health Insurance

Considering the situation, Insurance Regulatory and Development Authority (IRDA) has directed all general and health insurance companies to provide standard COVID-specific plans, these plans are divided into two categories of which, one is COVID Kavach and the second one is COVID Rakshak

Health insurance is always good to have as it provides a cover to you and your loved ones. The policy not only helps you to get the best treatment but also pays the total cost of treatment. Knowing the advantages it is always better to buy a comprehensive health insurance policy. But, before you get one, it’s important to look around for a product that covers all the members of the family. The sum insured under the policy is also one of the important factors. So, let’s start and compare COVID Kavach and  COVID Rakshak both the plans to make the decision making easier for you. 

COVID Kavach 

  • COVID Kavach is basically an indemnity type policy that pays you for the COVID-19 hospitalization.
  • The sum insured under this policy is up to 5 lakhs for the hospitalization and treatment of the insured person.
  • The insurance can be availed by anyone who is in between 18 to 65 years of age. 
  • The policy has no restriction and can be availed for oneself, parents, spouse, in-laws and for dependent children who are up to 25 years. 
  • The policy bears both pre and post hospitalization charges but to get the benefits it’s mandatory to be tested positive for COVID-19 from a government-approved hospital/test centre. 
  • The policy has a 15 day waiting period. 

COVID Rakshak

  • COVID- Rakshak is a benefit based health insurance plan, which pays the full sum insured when the person is tested positive for the contiguous COVID-19 virus and is hospitalized. 
  • COVID Rakshak policy is different from COVID kawach as it can only be availed for an individual. 
  • The insured person gets a lump sum amount when he/she is diagnosed positive for COVID-19 from a government authorized hospital/test centre.
  • The sum insured is 2.5 lakhs.
  • But, to avail of the benefits, one needs to get continuous hospitalization of 72 hours.
  • Waiting time for this policy is 15 days. 

As per the order of the Insurance Regulatory and Development Authority (IRDA), several health insurance and life insurance companies have come up with COVID specific plans. These plans offer fixed benefit covers and a lump sum amount when you are diagnosed with the disease. However, it’s totally your decision that you want to go with these plans or not. 

Seeing the benefits offered it’s clear that these insurance plans cover only COVID treatment. So, if you already have health insurance where your hospitalization cost is covered then you can avoid these COVID specific insurance plans. Whereas if you don’t have health insurance for you and your family then you can definitely go for a COVID- Kawach plan. This is suggested because the plan provides good coverage and you can opt for it for your entire family. The premium for this is affordable and ranges somewhere from ₹ 3,500 to ₹ 16,000 for a period of 9 to 9.5 months.