COVID-19 has taken countless lives in a span of a few months. which is why people around the world have thrown themselves into Chaos and confusion. Since this is a matter of life, the Insurance Regulatory and Development Authority of India or IRDAI has taken measures to protect lives.
IRDAI introduces two new insurance plans focusing on coronavirus pandemic. Namely, Corona Rakshak and Corona Kavach. Corona Rakshak will focus on a fixed benefit scheme in which an insured diagnosed with COVID-19 will be paid by the insurance company. the policy amount will amount to a sum of Rs 50,000 to Rs 2.5 lakh. Corona Kavach is a complete indemnity plan which will take care of all Hospital expenses arising due to Corona Virus. This plan will mainly focus on the hospital expenses which will be covered by the insurance company. The amount insured in this policy will amount from Rs 50,000 to Rs 5 lakh. These two insurance policies are in high demand around the policyholders. The absence of a cure has led to fear and panic which boosted the increase in the demand for these Policies.
More than 15 Lakh lives have been covered under these two policies since July. The new regulatory sandbox approach which was introduced by the IRDAI will be open their portal for filing applications on the Regulatory sandbox framework. This has pushed the industry to focus more on the product to fight against the Corona Virus. FINCON 2020, the annual insurance conference was the authority which released the number of people who were indemnified by the policy plan.
Corona Kavach plans focus on fixed benefits to its policyholders. If the holder of this policy is Diagnosed with COVID-19 and undergoes hospital treatment for three days, a fixed amount of his expenses will be paid by the insurance companies. Various Fintech companies are also collaborating with numerous insurance companies to show their participation in regulatory sandbox process. The authorities are pushing these plans and conducting various campaigns to spread awareness among the community. This can have a feeling of safety in the eyes of insured and be prepared for any unfortunate uncertainties. The Insurance regulatory framework is also encouraging many industries to come up with new ideas towards the development of products. This will increase the demand in the insurance sector as long as they involve complete transparency.
There is no question that Coronavirus has left panic, paranoia and confusion, but as of now, hope is key. Prevention is truly better than any cure. Uncertainties should be faced with plans and precautions. Insurance companies are showing promise in these aspects.