The Insurance Regulatory and Development Authority of India (IRDAI) has now allowed general and standalone health insurers to offer Corona Kavach Policy as a group insurance product. Once the insurers launch this group cover, companies and other organisations may soon be able to buy this cover for their employees.
It is to be noted that companies have been recently allowed by the government to re-start operations after the lockdown with limited workforce. Therefore, going forward as the economy opens up fully such a group insurance product may prove useful.
Earlier this month, amid spurt in Covid-19 cases in the country, the regulator mandated all insurers to launch Corona Kavach health insurance policy for both individuals and families. This is a standard policy created specifically to provide health insurance for coronavirus treatment.
As per the release, “This 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. It will also be extremely 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 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.”
The IRDAI release issued on July 21, 2020, states:
Insurers are allowed to offer Corona Kavach Policy as group product. The insurer needs to comply with the norms specified below for this product.
a. 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 operation of group policy.
b. The insurers shall determine the price keeping in view the cover proposed to be offered subject to compliance with the norms specified in the IRDAI (Health Insurance) Regulations, 2016 and Guidelines notified there under.
c. The product shall be filed on use and file basis by duly complying with the norms specified in Chapter IV of Guidelines on product filing in health insurance business as modified from time to time.
d. This group product shall comply with all the other applicable norms stipulated under “Guidelines on Product filing in Health Insurance business”.
What is Corona Kavach policy?
Corona Kavach individual and family policy was launched on July 10, 2020, is being offered by both general and health insurers. The term of the policy ranges from three-and-a-half months to nine-and-a-half months, with maximum sum insured amount at Rs 5 lakh.
Also read:
Who should opt for indemnity-type Covid Kavach health insurance


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