Corona Rakshak Policy: How It Differs From Corona Kavach

In response to the serious health and financial crisis that struck the country in the Covid-19 pandemic, the IRDAI (Insurance Regulatory and Development Authority of India) launched two health insurance policies – the Corona Kavach Policy and the Corona Rakshak Policy. We all are witnesses to the worst situation that we saw one year ago, there was turmoil in the whole country, everyone was scared. By the time people understood Covid-19, a lot of damage had been done, patients were not getting beds in the hospital. If beds are found, there is no oxygen in the hospital. Keeping all these things in mind, IRDA releases new norms, and as per norms, every health insurance company should provide a policy that covers Covid-19.

What is Corona Rakshak?

1. The Corona Rakshak health insurance scheme was introduced specifically for people who don’t have any health insurance coverage.
2. You can choose the tenure, ranging from 3.5, 6.5, and 9.5 months.
3. This is a standard, short-term scheme available across all insurance companies and offers wide eligibility for ages 18-65, with a waiting period of 15 days before claims can be made.
4. The payout is offered in the form of a 100% lump sum, so you have an income replacement benefit as you recover.
5. The sum assured ranges between Rs 50,000 and 2,50,000 with the flexibility to choose in multiples of 50,000
6. It helps policy-holders meet expenses connected with Covid-19 diagnosis and treatment of individuals.
7. It pays your complete hospitalization bill if you require hospital treatment for more than 72 hours, including ICU and ICCU.
8. It also covers home-based treatment for 14 days.
9. The policy enables you to get 100% coverage for the lump sum amount payable to the hospital and post-hospitalization treatment.

While both these policies are highly beneficial to those suffering from a Covid-19 attack, there are differences between the two policies.

Let’s examine the similarities first

• Both schemes cover treatment costs for the disease
• Both are short term policies
• The two products can be purchased for the duration of 3.5, 6.5, and 9.5 months
• They both include a waiting period of 15 days
• The premium payable is a one-time payment
• They can be purchased online or directly from the company’s office
• No deductibles are permitted on both products
• Entry age for both: Minimum – 18, Maximum – 65, Dependent Children – 25

What are the differences between them?

Since both these products are available with most insurance companies, it’s also important to know their differences. This will help you select the most in sync with your own unique needs, preferences, and budget.

Corona Kavach Policy

• It offers floater coverage, while Corona Rakshak is an individual policy.
• It is indemnity-based, while Rakshak is benefit-based.
• Provides sum insured from Rs 50,000 – 5 Lakhs.
• Compensation is based on hospitalization, while Rakshak’s is a one-time settlement.
• Pays for only hospitalization/treatment costs if the policy-holder catches Covid-19, whereas Rakshak is a benefit-based plan that gives 100% of the sum assured irrespective of the medical costs.

Corona Rakshak Policy

• It is ideal if you are the only earning member in the family.
• Corona Rakshak’s sum insured is from Rs 50,000 – 2.5 Lakhs.
• It comes into force when you are tested positive for Covid-19 in a government authorized center and are hospitalized for more than 72 hours.
• It cannot be claimed if the person has traveled to a restricted country.
• The insured sum is paid in lump sum form.

Similarities between both plans

You can select the policy based on your unique financial situation, the type of family you have, and the amount of premium you can afford. Whatever the policy you select, industry professionals recommend that it’s important to insure for a sum that’s at least 125% of your monthly salary. The Corona Rakshak policy is a good option when your only motive is income replacement due to the high and unforeseen medical expenses.