How Does Your Health Insurance Help You If You Have Covid 19?
There is no denying that 2020 has been a testing year for all of us. Ranging from the fear of the pandemic to the recession that our economy has been pushed. Several companies have already witnessed major cost cuttings – like cuts in salary, mass firing etc. The coronavirus hasn’t just brought our world to a halt (literally!) it has also resulted in financial instability and global and national slowdown.
In India, specifically, the cases are at an all-time high. While we are slowly getting out of the lockdown and getting back to work, the fear of the pandemic is still looming over us. India is currently in the top 5 countries with the highest number of Covid-19 cases, leaving behind countries like China and Italy. In such a scenario, it becomes imperative to take all necessary precautions to stay protected not just from Covid-19 but other diseases as well.
It is no secret that the healthcare facilities are already overwhelmed by the (increasing) number of cases every day. And keeping yourself safe does not just mean steering away from the virus but also ensuring that you are financially secure and are insured against Covid-19 and other diseases.
The Insurance Regulatory Authority of India, in April 2020, mandated that all the health insurance policies covering hospitalization costs offered by all the general and health insurance companies will cover the costs of the treatment of Covid-19 as well. Most of the health insurance policies cover all the hospitalization charges caused due to various ailments, except that of a few critical ailments. According to the IRDAI’s circular, anyone with a general health insurance policy can claim insurance for Covid-19 treatment. You can find the same information on several insurance companies’ website as well.
What does the (existing) health insurance cover now?
If the individual has been hospitalized for more than 24 hours after being diagnosed for Covid19, the existing health policy will cover all the costs. Some insurance providers have said that some policies might cover pre-hospitalization expenses as well including diagnostic tests, consultation charges and other coverages. Once the person is tested positive, from a registered healthcare center or lab, the insurance will cover all the quarantine related expenses to facilitate the isolation of the individual, at registered centers. Depending on your insurance cover, this may include ICU charges.
What is/will not be covered?
If the individual buys an insurance policy after being tested positive, then the hospitalization charges are not covered.
Expenses of the travelers, who must undergo, institutional quarantine before being tested will not be covered. However, if someone is tested positive after or during the institutional quarantine period, then the cost of the treatment and hospitalization will be covered. But the expenses of home quarantine are not covered.
Once you purchase a policy, there is a waiting period for 30-90 days. If a person is tested positive within the waiting period, then the expenses are not covered. Health insurance policies specific to critical illnesses like heart diseases, cancer, and other ailments, do not cover the expenses of Covid-19 treatment. You might have to read the terms and conditions to better understand under what scenarios can you claim the benefits of the policy.
What if I don’t have a health insurance cover?
Data has revealed that less than 4% of patients of Covid19 in India have a health insurance cover. If you don’t have a health insurance cover, it is recommended that you buy one at the earliest, keeping in mind the waiting period it entails.
The Ministry of Home Affairs has made it mandatory for employers to provide its employees with health insurance coverage as and when they resume operations.
The IRDA is working towards mandating all general and health insurance companies towards offering a standalone ‘Covid-19 health insurance’. As per the draft guidelines, the minimum amount to be insured is 50k and the maximum amount that can be insured is 5L. The policy covers hospitalization charges, expenses of the nurses, surgeons, specialists, and anesthetists, if any.
According to experts, Covid-19 policies are best for people who do not have any health insurance cover. However, it is recommended to have a comprehensive health insurance cover, that doesn’t just cover Covid-19, but covers other illnesses also.
