Corona Kavach Vs Corona Rakshak – Which one to buy?

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Corona Kavach Vs Corona Rakshak – Which one to buy? Getting confused right? Let us understand the difference between these two products for our better requirements. Due to the Corona pandemic, IRDA suggested all non-life insurers offer the standalone Corona related health insurance products to us.

Let us first understand the features of the both products in detail.

Corona Kavach Policy – Features and Benefits

What is the tenure of Corona Kavach Policy?

The policy period is 3 and half months, 6 and half months, and 9 and half months (including the waiting period). Hence it is always less than a year (which is the standard norm for all other health insurance products. Here, as it is a disease-specific, it is less than a year period.

How much it will cost?

Even though the product features are same across all insurers, the price vary based on the company to company. Hence, you have to check with individual companies before buying a product.

How much is the coverage?

There are two covers here. One is base cover and the second is optional cover.

Base Cover:-

1) Covid Hospitalization Expenses:-The hospitalization expenses incurred by the insured person for the treatment of Covid on Positive diagnosis of Covid in a Government-authorized diagnostic center. The coverages are as below.

a) Room, Boarding, Nursing Expenses as provided by the hospital or nursing home.

b) Surgeon, Anesthetist, Medical practitioner, Consultant, special fees (including the telemedicine) whether paid directly to the treating doctor or to the hospital.

c) Anesthesia, Blood, Oxygen, Operation theater charges, surgical expenses, ventilator charges, medicines and drugs, costs towards diagnostic, PPE kit, gloves, mask, and such other expenses.

d) ICU or ICCU expenses.

e) Ambulance expenses to the maximum of Rs.2,000 per hospitalization.

2) Home Care Treatment Expenses:-Health insurance will cover the costs of treatment of Covid incurred person on availing treatment at home maximum up to 14 days per incident provided that:-

a) The medical practioner advices the insured person to undergo treatment at home.

b) Continues active treatment and daily monitoring expenses.

c) Cashless home care benefit is available.

d) However, if the insured willing to take the service from non-network hospitals, a prior approval is required. Insurance company will respond to the same within 2 hours of receiving the request.

e) The expenses covered are-Diagnostic test undergone at home or at the diagnostic center, medicines prescribed in writing, consultation charges, nursing charges, medical procedure expenses or cost of a pulse oximeter, oxygen cylinder and Nebulizer.

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3) Ayush Treatment

4) Pre-Hospitalization-Medical expenses incurred with respect to Covid prior to 15 days of hospitalization are also covered.

5) Post-Hospitalization-Medical expenses incurred after the discharge of up to 30 days is also covered under this insurance.

6) There is NO DEDUCTIBLE in this policy.

Optional Cover:-

Hospital daily cash-The company will pay 0.5% of sum insured per day for which 24 hours of continues hospitalization for treatment of Covid following an admissible hospitalization claim under this policy. This benefit will be payable for up to the maximum of 15 days during the policy period.

Whether individual or family floater?

This plan is available individually or as a family floater. Hence, it is acting like a typical health insurance product with this feature. Here, family means-Self, legally wedded spouse, parents and parents-in-law, and dependent Children (i.e. natural or legally adopted) between day 1 of age to 25 years. If the child above 18 years of age is financially independent, he or she shall be ineligible for coverage.

How much cover you can opt for?

The minimum coverage is Rs.50,000 and maximum cover is Rs.5,00,000.

What are the premium payment options available?

Only single premium payment option is available as it is limited for less than a year insurance.

What is the minimum and maximum entry age?

The minimum age is 18 years and maximum entry age is 65 years. However, Dependent Child / children shall be covered from Day 1 of age to 25 years subject to the definition of ‘Family’”.

Is it availble for lifelong renewable?

Lifelong renewability, migration and portability stipulated under Regulation 13 and 17 of IRDA (Health Insurance) Regulations, 2016 respectively are not applicable.

Is there any waiting period?

Yes, there is a waiting period of 15 days from the date of policy issued. The Company shall not be liable to make any payment under the policy in connection with or in respect of expenses till the expiry of waiting period.

What are the exclusions?

Below are the exclusions:-

# Expenses related to any admission primarily for diagnostics and evaluation purposes. Any diagnostic expenses which are not related or not incidental to the current diagnosis and treatment.

# Rest Cure, rehabilitation and respite care

# Dietary supplements and substances that can be purchased without prescription, including but not limited to Vitamins, minerals and organic substances unless prescribed by a medical practitioner as part of hospitalization claim or Home care treatment.

# Expenses related to any unproven treatment, services and supplies for or in connection with any treatment. Unproven treatments are treatments, procedures or supplies that lack significant medical documentation to support their effectiveness. However, treatment authorized by the government for the treatment of COVID shall be covered.

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# Any claim in relation to Covid where it has been diagnosed prior to Policy Start Date.

# Any expenses incurred on Day Care treatment and OPD treatment

# Diagnosis /Treatment outside the geographical limits of India

# Testing done at a Diagnostic center which is not authorized by the Government shall not be recognized under this Policy.

# All covers under this Policy shall cease if the Insured Person travels to any country placed under travel restriction by the Government of India.

Whether multiple policies allowed?

Yes, as you know this policy covers the maximum of Rs.5 lakh sum insured, one can buy multiple policies and cover the expenses beyond Rs.5 lakh.

If the amount to be claimed exceeds the sum insured under a single policy, the policyholder shall have the right to choose insurers from whom he/she wants to claim the balance amount.

Where an insured has policies from more than one insurer to cover the same risk on indemnity basis, the insured shall only be indemnified the hospitalization costs in accordance with the terms and conditions of the chosen policy.

Let me tabulate the whole features for your better understanding.

Covid Standard Health Policy or Corona Kavach Policy - Features and Benefits

Premium Comparison of Corona Kavach

Let us now compare the premium rates for this plan. As you noticed it is a standard plan, the premium must be within the same range. However, if we go by below comparison done by Mint, you noticed that the premium varies a lot. I am not sure why such a huge variation when the product features are same.

Premium Comparison of Corona Kavach

For the age group of 31-35, the Future Generali offering you the sum insured to cover for Rs.436 and Rs.664 for 3.5 months and 9.5 months. However, the costliest one is from Go Digit General which is offering you the same cover at Rs.5,255 and Rs.8,085. This seems to be a huge difference.

I am not sure on what basis they are arriving at the premium. Even though we all can understand their profitability, risk management, and all those things, but as the underlying product is the same, why such a huge difference in premium?

Corona Rakshak – Features and Benefits

Let me explain you the features of Corona Rakshak features and beenfits with this below image.

Corona Kavach Vs Corona Rakshak

Now if look at the premium rates, I found that majority of insurers are least bothering about this product. I am unable to find the premium quotes on the majority of websites. However, if we take the comparison of two companies, which I was able to find, then they are as below.

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Future Generali-

9.5 months, age group 18-39 Yrs, Sum Insured Rs.2,50,000 is Rs.416 and for 40-59 years age group it is Rs.795.

IFFCO-TOKIO

9.5 months, age group 26-50 Yrs, Sum Insured Rs.2,50,000 is Rs.2,406 and for 51-65 years age group it is Rs.4,273.

Here also, you can notice the premium difference even though the underlying product is same.

Corona Kavach Vs Corona Rakshak – Which one to buy?

If you look at the features and the sum assured offered by both the plans, Corona Kavach is obviously the best choice for you to opt for. The reasons and few points from my side before you buy.

# Corona Kavach is an indemnity policy where they will replace the cost of the hospitalization up the sum insured opted. However, in the case of Corona Rakshak, it is a time claim payable on the diagnosis of Corona.

# Features of Corona Kavach are exhaustive than the Corona Rakshak.

# For the better features, you will end up in paying almost the same premium for both the policies, then why to opt for a lower product of Corona Rakshak.

# Corona Rakshak is offered to individuals ONLY. However, Corona Kavach is for a family.

# Sum assured under Corona Kavach is up to Rs.5 lakh but in case of Corona Rakshak, it is just 2.5 lakh.

Few more comparisons are listed below for your better understanding.

Corona Kavach Vs Corona Rakshak

Conclusion:-The better choice between Corona Kavach Vs Corona Rakshak is obviously Corona Kavach. Hence, better you choose this policy. However, as you noticed, the premium variation is too much among insurers. Hence, do your own research for your age and accordingly opt for the company. As the basic features of the product are the same, the only option in your hand is to compare the premium and go ahead with the buying. The funniest part that I noticed from the Star Health Insurers that they quoted the premium for Corona Kavach for the age above 65 years. However, the maximum age of buying the policy is not more than 65 years.

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Basu Nivesh
Basav is a SEBI Registered Investment Adviser (SEBI RIA) practicing the Fee-Only Financial Planning Service. He is a CFP (Certified Financial Planner) and blogger at Basu Nivesh. He services around 300+ satisfied clients.
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