Amid the alarming coronavirus situation, health insurance companies have made it difficult for the people to buy Corona Kavach policy. While the insurance companies have still not discontinued it after the Insurance Regulatory and Development Authority of India (IRDAI) came hard on the companies, they have now made it difficult for people to buy these policies. Why are the companies doing this? Zee Business’ Anurag Shah has this report.
IRDAI launched Corona Kavach policy for people at low premiums, Shah said. The regulator has been receiving complaints that the companies were not renewing the policy and were not selling these policies.
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The IRDAI has mandated the general and health Insurers to offer Corona Kavach Policy till 30 September 2021, Shah said.
To circumvent the order, insurance companies have now made the process very complex so much so that even if the people are willing to buy this policy, they cannot.
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As an example, Shah said that the website of state-run Oriental Insurance does not have information on Corona Kavach policy. Call to customer care revealed that the Corona Kavach product is not available online. The policy is not being sold even through the agent.
If somebody still wants to take it then he must visit the nearest branch as indicated by the company, Shah said.
Shah said that it is anybody’s guess how difficult it would be for people to visit the branch to get the policy under current circumstances.
Even private insurance companies have adopted a similar stance, he further said. He tried in HDFC Ergo and was told to visit the branch. Meanwhile Star Health Insurance said that the company has stopped selling this product.
Other state-run companies like New India Assurance and United India Insurance and many private companies are still selling this policy but the processes have become very difficult, he further said.
Under the basic policy an insurance cover between Rs 50,000 and Rs 5 lakh is provided. Under this policy, all expenses incurred for treatment of Coronavirus have been included. The policy offers insurance cover for 3.5 months, 6.5 months and 9.6 months.
Why are companies reluctant to sell the policy?
Until March around 45 lakh people have purchased this policy and there were claims made by the people. But in the second wave, the number of claims have grown significantly, Shah said. The companies are now of the view that it could become challenging for them to settle claims of people who have bought this policy at low premiums.