Irdai allows Covid renewal, migration and portability

Mumbai: The Insurance Regulatory and Development Authority of India (Irdai) has allowed insurers to offer policyholders the choice to renew, migrate and port coronavirus-specific health covers that were introduced in June.These standard health products — Corona Rakshak and Corona Kavach — have tenures of 3.5 months, 6.5 months or 9.5 months.“…policies of any tenure may be renewed for further terms… The renewal shall be subject to the underwriting policy of the insurer,” Irdai said in a circular on Tuesday.The move comes as high treatment costs and low insurance coverage in India result in financial distress for thousands of Indians hospitalised because of the virus.“This is a welcome move as the Covid-19 vaccine is yet to come out and the purpose of these policies is to mainly cover the treatment costs against immediate health risks that people face due to the pandemic,” said Gurdeep Singh Batra, head of retail underwriting at Bajaj Allianz General Insurance.Since its launch, the Covid-19-specific health policies have been popular among households looking for quick and short-term health covers. According to Irdai chairman Subhash Kunthia, about 6 million such covers had been sold by September.The regulator’s move could prompt policyholders to switch to more comprehensive health covers, said Amit Chhabra, health business head at Policybazaar.“Apart from renewing the existing policies, consumers who wish to switch to a compressive plan for overall protection along with cover for Covid-19 can avail of the migration facility offered by the regulator. This move… will bring more and more people under insurance bracket as they will also be able to avail treatment for bigger illnesses like cancer, heart problems, accidents and many more,” said Chhabra.

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