Everything You Need to Know About COVID-19 Health Insurance

It has been more than a year and a half since the whole world is battling the deadly COVID-19 disease. Currently, India is suffering from the backlash of the second wave that is stronger than ever. Many people who were barely prepared to face the disease have undergone huge stress and loss, both financially and emotionally. In such a challenging time, COVID-19 health insurance is a necessity more than a want. When we are still struggling with the massive number of cases and death toll, the third wave is in the row. Therefore, it is vital to prepare for the unforeseen and safeguard the financial stability of your family. Many misconceptions are still present about coronavirus health insurance online. Let’s break them one by one.

What Is Coronavirus?

Before talking about the COVID-19 health insurance, it is crucial to understand the disease. Coronavirus first originated in Wuhan, China, around late December 2019. In COVID, a group of viruses attacks the person’s immune system, resulting in a mild cold that can build up to a severe acute respiratory syndrome (SARS). It is a highly infectious disease that can spread quickly among several people at close distances. The symptoms of COVID replicate regular flu, such as fever, sore throat, fatigue. However, with various variants evolving, the symptoms can vary from person to person.

What Is A COVID-19 Health Insurance?

Any health insurance plan that covers the treatment cost of coronavirus can be termed as COVID-19 health insurance. Generally, all health insurances provide coverage for hospitalization in case of viral infections. And COVID-19 is a viral disease that gets automatically included in a comprehensive insurance plan that pays both pre- and post-hospitalization expenses for coronavirus treatment. However, as per IRDAI guidelines, two health insurance policies have been rolled out that primarily focus on COVID-19 and cover other diseases. Additionally, COVID-19 is a new disease and gets covered from the day the insured gets diagnosed with the disease.

What Are the Types of Health Insurance Available For COVID-19 In India?

According to IRDA rules, two standard health insurances have been launched for specifically COVID-19 treatment. The policy terms for both the policies remain consistent and uniform across all the insurance providers in India. Following are the health policies in question:

Corona Kavach Policy

Corona Kavach policy is an indemnity-based insurance plan. In simple terms, it will pay off for the actual treatment cost up to the sum insured. In corona Kavach, you can cover both the individual and family at an affordable premium. The policy covers home treatment expenses, hospitalization costs, ambulance charges, doctor’s consultation fees, ICU charges, equipment charges such as gloves, PPE kits, masks, etc. Additionally, it covers AYUSH treatment and has the option of daily cash benefit. The sum insured ranges from fifty thousand to five lakh rupees. It is also known as single premium coronavirus health insurance.

Corona Rakshak Policy

Unlike the Corona Kavach policy, this policy is benefit-based. It pays the policyholder a lump sum amount, i.e., the sum insured when he/she gets diagnosed with coronavirus. It is also a standard policy focusing on the treatment of COVID-19. The sum insured ranges from 2.5 lakhs to 5 lakhs and is available from individuals who are between the age of 18-65 years. However, the benefit is only available when the insured tests positive for COVID at a government-recognized medical center and is hospitalized for a minimum of 72 hours.

Which One Should You Choose Between the Two Standard Policies?

Many factors come into play while choosing a health insurance policy. Here are some that will help you in making your decision.

Existing Health Policy: If you are already insured under a regular health insurance policy covering the room rent during hospitalization, the Corona Rakshak Policy will be better for you. On the other hand, the Corona Kavach policy will be beneficial in case of no prior health insurance as it will cover treatment costs with room rent.

Responsibility: If you are the breadwinner of the family, then Corona Rakshak Policy is the best. Make sure that your cover is a minimum of 125% of your monthly salary. However, the premium should not disbalance your financial stability in the already trying times. Opt for this policy when your sole priority is income replacement.

Preference: You can also opt for either of the policy depending on your preference and how much premium you are willing to shell out. Hence, you can opt for the Corona Kavach policy when you are already insured if your focus is on the treatment costs.


Coronavirus health insurance is vital for individuals from all age groups. Depending on your status and insurance coverage, opt for a policy that best suits your needs. However, it is advisable to have one standard insurance for COVID-19 in addition to your regular policy for extra coverage and safety.

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