With the case count rising across the country, the Insurance Regulatory and Development Authority of India (IRDAI) has unveiled a standard individual Covid-19 product, under which room charges have been capped at Rs 5,000 per day, ICU charges at Rs 10,000 per day and quarantine charges at Rs 3,000 per day, with a maximum sum insured of Rs 5 lakh.
While it is a draft product for now, and there may be some minor tweaks, the regulator has asked general and health insurers to ensure that this product is compulsorily offered on or before June 15.
Sources in the industry said while the existing health insurance policies cover Covid-19 treatment, the fresh IRDAI guidelines and caps would be limited to Covid-specific products that will be issued over the next 10 days.
The IRDAI move comes at a time when the total case count is over 2 lakh, of which 1,06,737 are active cases.
Sources said IRDAI has included treatment of Covid-19 patients in makeshift hospitals, which is not covered by the existing health insurance policies.
“This is an important addition. However, IRDAI could have made some changes to include this in the existing health insurance policies,” said a senior official with a leading general insurance company.
He said that while the IRDAI has come out with the product to offer a cheaper option to customers, “it’s unlikely that the product will be cheap as the line of treatment is not fixed, no one knows how the claims will behave. There is a risk and yes, we will take the risk”.