BENGALURU: Medical insurance for Covid-19 under the Corona Kavach policy is offered to all people at least up to the age of 65. For those above that age group, it is offered based on the insurers’ underwriting policy and risk appetite, the Insurance Regulatory and Development Authority of India (IRDAI) told the Karnataka High Court on Thursday.
IRDAI filed a statement to this effect before a division bench headed by Chief Justice Abhay Shreeniwas Oka in response to a PIL filed by Letzkit Foundation, seeking directions on providing either free or affordable medical insurance to the elderly.
IRDAI also said Corona Kavach provided coverage between Rs 50,000 and Rs 5 lakh for 3.5-9.5 months under the scheme. Also, there was a 5% discount on premium for health workers. The regulatory authority said that providing insurance for free was not feasible as the premium of such policies would have to be cross-subsidised.
“If senior citizens are to pay lesser premium, the difference in the cost of policy will have to be cross-subsidised by people who are younger. The number of persons below the age of 40 taking health insurance policy is very low,” IRDAI said, adding that increasing the premium in this sector could dissuade younger people from subscribing to health insurance.
IRDAI also denied the petitioner’s allegation that there is no policy with reasonable premium, and said standard indemnity based policies such as Arogya Sanjivini are available. If insurers are not allowed to offer products based on sound actuarial principles, companies will become unviable.