All About COVID-19 Short term Health Insurance Policies
As per the guidelines issued by Insurance Regulatory and Development Authority of India(IRDAI), the insurance companies can offer short term health insurance plans specifically covering coronavirus disease. Insurance coverage through these short term insurance plans would be offered for a duration between 3 to 11 months. These insurance plans are allowed to be provided both as individual products and group products.
Owing to the current pandemic situation, IRDAI is of the view that offering cover specifically for coronavirus disease is the current necessity. Therefore, all the insurance providers be it health, life and general insurance companies are permitted to offer short term plans considering COVID-19.
Key Guidelines for Short Term Health Insurance Plans for COVID-19
The key guidelines for short term health insurance policies for COVID-19 as per Insurance Regulatory and Development Authority of India are mentioned below:
- Short term policies are allowed only to health insurance plans concerning just COVID-19.
- Short term policies can be provided both as individual and group products.
- Coronavirus specific short term health insurance policies can be issued for a duration of less than 12 months. Also, within this duration, the plan term ought to be in the multiples of months completed. A policy duration of less than 3 months cannot be issued.
- A policy duration with 12 months is not considered as a short term health insurance plan.
- Separate add-ons are not allowed with these short term policies.
- Life insurance companies are allowed just to provide benefit based short term health insurance policy.
- Health and general insurance companies are allowed to issue both benefit and indemnity based short term health insurance policy.
- Migration, portability and lifetime renewability options are not pertinent to the short term health insurance policies given by health and general insurance companies.
- Optional coverages enhancing the basic health insurance cover are allowed to be provided for the same policy tenure.
According to an IRDAI circular, these short term health insurance policies are allowed to offer just health insurance cover specific to Coronavirus. Also, the waiting period should not exceed 15 days. Add-ons, lifelong renewability, portability, and migration are not permitted to be offered on short term health insurance policies by health and general insurance companies.
Who Should Opt for this Short Term Health Insurance Policy for COVID-19?
It is ideal for individuals who do not have any health insurance cover or are looking for an additional cover concerning COVID-19. With this policy, healthcare expenses will be offered by the insurance company concerning coronavirus disease in case of any medical emergency.
