When the whole world has been enveloped by ‘coronocolypse’, the fear of not being prepared to fight this pandemic is increasing greatly too. When it comes to hospitalisation along with the fear of losing a loved one comes the concern of managing the expenses. In such a situation it is obvious that we try everything in our capacity to secure ourselves and our loved ones.
Keeping the concerns of the general public in mind, the Insurance Regulatory and Development Authority of India (IRDAI) has rolled out 2 health plans, Corona Kavach and Corona Rakshak, and has issued certain guidelines for health insurance companies. Both the plans are ‘short-term’ and will be valid till 30 September 2021. To draw a detailed comparison between the two plans, let us first take a quick look at the differences and then discuss them elaborately.
List of Differences Between the Corona Kavach and the Corona Rakshak Health Insurance Plans
| Corona Kavach | Corona Rakshak |
|---|---|
| This is an indemnity-based plan. | This is a fixed benefit plan. |
| It can be offered only by health and general insurance companies, not life insurance companies. | It can be offered by all insurance companies. |
| A minimum hospitalisation of 24 hours is required. | A minimum hospitalisation of 72 hours is required. |
| The sum insured can be between INR 50,000 to INR 5 lakhs. | The sum insured can be between INR 50,000 to INR 2.5 lakhs. |
| The ‘Family Plan’ is available to the customers. | The ‘Family Plan’ option is not available. |
| Cash cover for daily hospitalisation is available. | This plan doesn't cover hospital daily cash. |
They are both of different types
Corona Kavach is an indemnity type policy, this means that it would provide reimbursement in case of hospitalisation due to COVID-19. Corona Rakshak on the other hand is a fixed benefit plan. This means that 100% of the sum insured is paid to the insured person after the diagnosis of COVID-19 and a hospitalization for a minimum of 72 hours. The amount is paid irrespective of the expenditure done by the policyholder.
Another difference between the two is that Corona Kavach comes with the individual as well as family floater benefit. On the other hand, Corona Rakshak is available only on an individual basis.
Hospitalisation Period
In the Corona Kavach Plan, the hospitalisation should be for at least 24 hours. But in the case of the Corona Rakshak Plan, the hospitalisation has to be 72 hours or more.
Rate of Premium and Coverage
Though both policies come at an affordable price, their premium rates are different. Corona Kavach by Bajaj Allianz can be bought by a 35-year-old at INR 210 for a period of 3.5 months, with a sum insured of INR 50,000. Star Health and Allied Insurance is offering an INR 2.5 lakh cover at the rate of INR 3,846 for a period of 3.5 months. It must be kept in mind that different companies are offering different rates for these policies.
The minimum amount of sum insured in the Corona Kavach plan is INR 50,000 and the maximum is INR 5 lakhs. Whereas, in the case of the Corona Rakshak plan, the minimum amount of sum assured is INR 50,000 and the upper limit is INR 2.5 lakh.
Availability
The Corona Kavach plan is sold by health and general insurance companies, and there are about 30 companies that are offering this policy. Corona Rakshak can be sold by all companies including life insurance companies.
The option of Additional Benefits
The Corona Kavach comes with the option of “Hospital Daily Cash”. With this add-on, 0.5% of the sum insured is issued to the policyholder per day for a maximum of 15 days of hospitalisation, for the treatment of COVID-19. Because Corona Rakshak is a fixed benefit plan, no such additional benefits or add-ons are available.
Summing Up
With the COVID-19 cases rising by the minute, it can be concluded that both policies cover the financial risks that this deadly disease can cause. Both come with their own share of benefits and you need to decide which policy would suit you best. Corona Kavach would cover the treatment-related expenses like room rent, nursing, boarding, etc. People who do not have health insurance plan may want to invest in this plan as it would take care of the treatment.
The Corona Rakshak plan, on the other hand, will pay the complete sum insured if you are diagnosed with COVID-19 and are in hospital for 72 hours or more. Health insurance plan for COVID -19 is more suitable if you are the main earner in the family. This plan would also suit you in case the aim is replacement income. Thorough research will help you weigh the pros and cons of both plans.
There is no denying that both these plans can come in very handy and can save you from a financial crisis, but in no way can they replace or substitute a regular health plan. Remember, these plans would only cover the expenses that are made for the treatment of COVID-19 only.
