Corona Kavach Policy – The health insurance cover for the treatment of Covid-19 disease – the indemnity health insurance policy Corona Kavach – could see a rise in the premium payout. In a meeting held recently between the top officials of General Insurance Companies and Insurance Regulatory and Development Authority of India (IRDAI), a request was made by the former, towards increasing the health insurance premiums. Zee Business’ Anurag Shah has this exclusive report.       

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Shah said that the insurance companies have argued that the Corona Kavach scheme was designed in 2020 in view of the first wave. They have said that the pricing of the premiums during the first wave was kept low.  

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However, the second wave has been much more severe, something that was not anticipated by the government and the hospitals. They have said that the claims filed with the insurance companies have significantly increased in the second wave and considering the existing situation, IRDAI must consider allowing the companies to increase the premiums of Corona Kavach policy, the companies have told the regulator, Shah said citing his top sources.     

Amid the rising cases of claims, many companies have stopped renewing the existing Corona Kavach policies, Shah said. While some companies have introduced conditions, which have made it unviable for consumers to buy this policy.  

As the complaints from the customers were rising, the insurance regulator directed the companies to renew and issue new Corona Kavach policies till 30 September 2021.  

The companies are not too keen on issuing Corona Kavach policies now amid the rising number of claims being filed by the people, he said.  

Many companies have discontinued the sale of this policy online through their websites and have also discontinued commissions of the agents selling the policy offline. 

While this has ensured that the companies are not on the wrong side of the IRDAI order, the customers willing to buy this policy are at the receiving end, he further said.  

Shah’s sources have told him that the claims worth Rs 25,000 cr have been filed with the insurance companies for all health insurance policies including the Corona Kavach. The sources have further revealed to him that the companies have said to IRDAI that the claim amounts have exceeded the policy premiums they have collected.  

The policy was due to expire on 31 March but was extended for six months.