Page 13 - Insurance Times July 2021

Health Insurance News

New therapies not and Development Authority of India repricing of Corona Kavach and Corona
(IRDAI) not in favour of such a move. Rakshak. We priced it around June
covered under Covid
"With claims and losses mounting, 2020, and the actual peak has been
specific policies some insurers were looking at the five to 10 times the expected. These
New therapies for the treatment of possibility of revising the premium on products are a guaranteed loss of
Covid-19 may not covered by general health insurance this year. However, money," said a source privy to the
health and even coronavirus-specific the IRDAI is not keen on a rate hike in development. Sources said general
insurance policies. the middle of a pandemic," said the insurers discussed the issue with IRDAI
CEO of an insurance company, adding recently and shared data on losses.
Several private hospitals are using
that the focus now is to clear claims. "Insurers too have to report to their
these new therapies and drugs in view
of their 'efficacy'. However, some of "As of now, there has not been any shareholders. These schemes were
these therapies are expensive - costing increase in the premium rates for supposed to be for a short duration and
patients anything between Rs. 60,000 health insurance this fiscal. A number no one had thought that Covid cases
and Rs. 5 lakh, depending on the of insurers had hiked rates last year and claims would rise to such an
patient's level of infection, according and some were considering doing so extent," noted another insurer.
to information provided by hospitals. this year," said another industry The Corona Kavach and Corona
expert.
A senior official of a leading private Rakshak policies were launched last
general insurer that the monoclonal year by all insurers based on IRDAI
antibody therapy and cocktail Insurers want Corona guidelines to provide Covid-specific
treatments, for instance, are not Kavach, Corona Rakshak cover to customers.
covered under the health policies. "This policies re-priced Corona Kavach is a family health
is because most of these treatments do insurance policy for Covid-19 with sum
Insurers have approached the
not involve hospitalisation and also are insured between Rs. 50,000 and Rs. 5
insurance regulator IRDAI for re-
not on the list of drugs/treatments lakh available with a term of three
pricing of Corona Kavach and Corona
advised by the Indian Council of
Rakshak policies. and-a-half months, six-and-a-half
Medical Research," he said. months and nine-and-a-half months.
Insurers point out that these low- Premiums are as low as Rs. 150 in some
Health insurers may not ticket policies were expected to be for cases.
a short duration, but with the
rise soon pandemic continuing, they are turning Corona Rakshak is a defined benefit
A hike in health insurance premium out to be expensive and hitting their policy with a sum insured between Rs.
may not be on the cards, at least for balance sheets. 50,000 and Rs. 2.5 lakh.
now, with the Insurance Regulatory "The industry as a whole has asked for Many insurers are now advising

The Insurance Times, July 2021 13