Good news! IRDAI directs insurers to continue to renew/sell COVID-19 policies

Insurance companies are refusing to renew Corona Kavach, the special Covid-19 policy launched last year to provide a hospital cover against admissions arriving due to the disease. 

The main reason behind the hesitancy in renewing the insurances is due to the rising number of claims, as many across the country catch the deadly virus, especially amid the second Covid-19 wave. 

Taking note of the situation, insurance regulator IRDA has directed insurance companies to continue the renewal and sale of the Corona Armor Policy till 30, September 2021. Previously, insurers were expecting that the IRDA won’t extend the policy renewal and sale after March 31, 2021. 

While the IRDA is forcing the insurers to renew Covid-19 claims, insurance companies are finding unique ways to dodge the order. For instance, they have stopped offering Covid-19 insurance online, and are only selling it offline. A few companies have stopped offering incentives to their agents for the sale and renewal of Covid-19 insurances. 

It is important to note that insurance companies have actually paid more in settlements and claims than they had earned via premiums. So far, 43 lakh people have been insured under 25 lakh Corona Kavach insurances. 

Moreover, insurers have received Rs 580 crore in premiums while they claim to have paid Rs 570 crore in claims. The covid-19 policy offers hospital cover at a very low premium. So far, over 74,000 people have claimed benefits under the Covid-19 policy. 

Under this policy, insured people are offered basic health insurance ranging from RS 50,000 to Rs 5 lakh. The cover is valid for 3.5 months, 6.5 months or 9.5 months, depending on the policy you apply for. It is important to note that new policies have a 15 day waiting period. Anyone aged 18 to 65 can purchase Covid-19 health insurance.