HYDERABAD: The number of confirmed coronavirus cases in India is steadily rising and insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) has asked insurers to not only extend the health cover to the deadly virus but also to process claims for the treatment of the coronavirus quickly.
Accordingly, insurers are making necessary changes to existing policies and customers must check with their respective policy providers about inclusion and exclusions.
For instance, SBI General Insurance provides claims only if the concerned person is hospitalised for at least 24 hours. "Most of the health insurance policies in India do not cover outpatient treatment. However, if coronavirus is declared a pandemic by WHO or Indian government, then claims might not be payable, as such claims are excluded under many health insurance policies," said Subramanyam Brahmajoysula, head (underwriting and reinsurance), SBI General Insurance.
Last week, sector watchdog IRDAI asked insurers to settle hospitalisation claims related to coronavirus disease under health policies and instructed insurers to have need-based policies including covering treatment costs for the coronavirus infection.
"For the purpose of meeting health insurance requirements of various sections, insurers are advised to design products covering the costs of treatment for coronavirus," IRDAI said in a circular. It added that where hospitalisation is covered in a product, insurers shall ensure that the cases related to the coronavirus disease (COVID-19) shall be expeditiously handled.
Besides, the costs of admissible medical expenses during the course of treatment, including the treatment during quarantine period, should be settled in accordance with the applicable terms and conditions of policy contract and the extant regulatory framework. "All the claims reported under COVID-19 shall be thoroughly reviewed by review committee before repudiating the claims," the circular added.
Several lakhs of travellers are being screened for the novel coronavirus at airports. Also, more than 10 lakh incoming people at India’s open borders with Nepal, Bhutan and Myanmar too have been screened, and counting.
Besides, in India, the existing life insurance policies cover death irrespective of the cause of death, and the cover will be provided by the life insurance company. Ratings agency Moody’s said that as more nations fall prey to the disease, there was a direct impact on global insurance players, since they have seen a steep rise in claims. If there is a significant uptick in mortality levels, this might trigger rise in claims for life insurers as well.