Do Health Insurance Companies Cover the Cost of COVID-19 Treatment?

Do Health Insurance Companies Cover the Cost of COVID-19 Treatment?

Bajaj Finserv Health
February 16, 20225 mins read

Key Takeaways

  • Medical inflation in India is twice the rate of general inflation
  • IRDAI has mandated health insurers to cover COVID-19 expenses
  • COVID-19 health insurance cover should offer a high sum insured

Medical expenses are on the rising, making it difficult to afford treatment. Data suggest that medical inflation has grown twice the rate of general inflation [1]. This only compounds the problem posed by the novel coronavirus pandemic as the treatment of COVID-19 can be quite expensive. Thankfully, health insurance helps cover such costs during medical emergencies. This also applies to COVID-19 treatment cost as the IRDAI has made provisions available for those seeking assistance from insurers. 

Generally, the approach included the use of a stand-alone policy or a top-up plan to cover high medical treatment expenses. COVID-19 treatment fell under this category but there have been a few changes regarding the same. Read on to find out if your existing health insurance will protect you against the expenses. 

Additional Read: Health Insurance During Pandemic Safe Solution

Is Coronavirus Covered Under Health Insurance Policies?

In wake of the rising COVID-19 cases across the country, the IRDAI in 2020 advised all general and health insurance companies to cover the cost of COVID-19 treatment. All indemnity-based health plans covering hospitalization costs will cover the treatment expenses of COVID-19. This extended to health insurance companies covering COVID-19 and further included expenses due to omicron [2].

This resulted in most health insurance companies covering the treatment costs of COVID-19 in India. So, it is safe to assume that your existing comprehensive health insurance policies cover the medical costs against this disease. Do note that insurers will cover costs after the completion of the waiting period. These costs will include in-patient treatment, pre-and post-hospitalization, and diagnostic expenses. The best way to know the full extent of coverage is to contact your health insurer.

what does not includes in COVID - 19 Health Insurance

What Is Coronavirus Health Insurance?

Coronavirus health insurance is a personalized health insurance plan to cover the COVID-19 hospitalization and treatment expenses. There are several types of coronavirus health insurance plans such as the Corona Rakshak or the Corona Kavach policy. Even comprehensive health insurance plans that cover various illnesses include COVID-19 coverage. As COVID-19 is a viral infection, comprehensive health insurance plans include in-patient expenses. This covers pre-and post-hospitalization expenses incurred due to the disease.

What Are the Types of Coronavirus Health Insurance Plans in India?

Corona Kavach

Corona Kavach is an indemnity-based cover that provides a coverage amount of Rs. 50,000 to Rs. 5 lakh in multiples of Rs. 50,000. The compensation paid depends on hospitalization. This standard coronavirus health insurance policy covers:

  • Hospitalization expenses
  • Ambulance charges
  • PPE kits
  • Medicines
  • Masks
  • Doctor fees
This plan also covers AYUSH treatment. You can get coverage for your whole family under this policy. This health plan is available with a single premium and a tenor of 3.5 months, 6.5 months, and 9.5 months [3].

Corona Rakshak

Corona Rakshak is a benefit-based cover that has a sum insured of Rs. 50,000 to Rs. 2.5 lakh in multiples of Rs. 50,000. A one-time settlement is made in case of a claim. This COVID-19 specific health insurance policy covers:

  • Hospitalization
  • PPE kits
  • Masks
  • Gloves
  • oxygen cylinders
  • AYUSH treatment

Similar to Corona Kavach policy, this policy has an entry age of 18 to 65 years and has a tenure of 3.5 months, 6.5 months, and 9.5 months.

Coronavirus Group Health Insurance

If you are insured under a group health insurance policy such as the employer’s group health policy, then you need to check with the insurer. See if the COVID-19 treatment expenses are covered under the group health policy. You will be covered if the group health policy is either a Corona Rakshak or Corona Kavach policy.

Comprehensive Health Insurance Plan

Your comprehensive individual or family health policy also covers COVID-19 hospitalization and treatment costs. The IRDAI has directed health insurance companies to cover expenses related to COVID-19 in their indemnity-based plans. These plans will cover hospitalization, as well as pre and post-hospitalization cover. So, if you have an existing health insurance policy, check with your insurer.

Cost of COVID-19 Treatment -35

What Is Included Under Coronavirus Health Insurance?

Below are some expenses that get covered under coronavirus health insurance policies.

  • In-patient hospitalization expenses
  • Pre-hospitalization expenses
  • Post-hospitalization expenses
  • Day-care procedures
  • Home hospitalization
  • Accidental hospitalization
  • Critical illness hospitalization
  • Alternate treatment
  • Road ambulance expenses
  • ICU room rent
  • Organ donor expenses
  • Daily hospital cash
  • Recovery benefit

What Should an Ideal Health Plan for Covid-19 Include?

As coronavirus is relatively new and its treatment can cost a lot, here is what a COVID-19 health plan should include:

  • A high sum insured to cover the hospitalization and treatment costs
  • Extended hospitalization coverage if you are required to get hospitalized for days or weeks
  • Inclusion of the cost of COVID-19 vaccination at private clinics and hospitals
  • Comprehensive coverage to compensate for the loss of income and provide financial freedom
  • Coverage for follow up tests, in case you contract the COVID-19 virus again after a full recovery 
  • Protection for the whole family through family health plans with low sub-limits on pre-and post-hospitalization expenses

Why Do People in India Need Health Insurance with Covid-19 Cover?

The novel coronavirus has greatly impacted lives across the world. With an increasing number of cases in India, many people have lost their jobs leading to income instability. The pandemic has affected the Indian economy as well [4]. In fact, around 230 million Indians got pushed into poverty due to the COVID-19 pandemic [5]. Many people cannot afford to pay for healthcare which is why health insurance with COVID-19 cover is key. This will help individuals get timely access to care during medical emergencies. 

Additional Read: Ayushman Bharat Yojana

Taking preventive measures should be your first step towards protecting yourself and your family from COVID-19. This includes buying the right health insurance for your whole family. Consider buying Complete Health Solution plans offered by Bajaj Finserv Health. These plans offer you a comprehensive medical cover of up to Rs.10 lakh. With these plans, you can enjoy preventive health check-ups, reimbursements on doctor consultations, lab test benefits, network discounts, and more. Sign up today and protect your health right away!

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Please note that this article is solely meant for informational purposes and Bajaj Finserv Health Limited (“BFHL”) does not shoulder any responsibility of the views/advice/information expressed/given by the writer/reviewer/originator. This article should not be considered as a substitute for any medical advice, diagnosis or treatment. Always consult with your trusted physician/qualified healthcare professional to evaluate your medical condition. The above article has been reviewed by a qualified doctor and BFHL is not responsible for any damages for any information or services provided by any third party.

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