Provide COVID-19 cover in health insurance policies: IRDAI

Mysore/Mysuru: COVID-19 has taken the world by storm. What began in China’s Wuhan has now cast its shadow in more than 100 countries, including India. While several advisories are floating around on prevention, will your health insurance cover it if you indeed happen to get infected?

For now, the Insurance Regulatory and Development Authority of India (IRDAI) has taken immediate measures. IRDAI said all Coronavirus-related claims shall be expeditiously handled and all expenses incurred during the course of treatment, including during the quarantine period, shall be covered by all insurers — State-owned and private. 

It has also asked all insurers to offer need-based health insurance plans to cover the cost of treatment for Coronavirus. 

“A basic health insurance policy will certainly cover the medical expenses incurred on hospitalisation for any viral infection, including Coronavirus. However, infectious diseases are not covered for the first 30 days from the inception of the policy,” said an officer from a health insurance company. 

The IRDAI has advised all health insurance companies to provide medical cover for Coronavirus in order to avoid any hardships with immediate effect. The instructions are issued under the provisions of Section 14 (2) of IRDAI Act.

“If coverage is granted for treatment of hospitalisation expenses, in order to alleviate hardships that may be caused to policy holders, all claims reported under Coronavirus shall be handled,” the circular issued by the insurance regulator noted.

According to the circular, if hospitalisation is covered under a policy, all Coronavirus cases must be expeditiously handled. The costs of medical expenses will be settled in line with the terms and conditions of the policy contract. Before rejecting any Coronavirus claims, a thorough review must be conducted.

Senior Divisional Manager of Life Insurance Corporation (LIC), Mysuru, Vishveshwar Rao said that as per the IRDAI direction, Coronavirus has to be covered and claims have to                       be entertained. 

“Earlier, there used to be a charge to add a disease to an existing policy. Now we cannot levy extra money and this is an epidemic and not a pre-existing disease. Coverage has to be given and all IRDAI rules will be strictly adhered to,” he said.

This post was published on March 21, 2020 6:44 pm