Understanding the new pandemic policies – Corona Kavach and Corona Rakshak

Posted by Saideep Kanamarlapudi on Aug, 2020

IRDAI has made provisions to sell new COVID-19 policies namely Corona Kavach and Corona Rakshak. Many people are having clouds of doubts and confusion regarding the terms and conditions of the new insurance policies. And many are thinking about how these new insurance policies are different from the prior ones. Let's clear all doubts and confusion regarding the new COVID policies and understand the major difference between the 2 policies.

Let’s consider what people are considering while buying an insurance policy, that is how much maximum amount an insurance company can pay to the insured. In the case of Corona Kavach and Corona Rakshak the minimum sum insured is Rs 50,000/- whereas the highest limit is Rs 5,00,000/- and Rs 2,50,000/- respectively.

The payment of claim will be possible if the patient gets admitted in the hospital for 24 hours in Corona Kavach and payment of the claim in the case of Corona Rakshak will be 72 hours in the hospital.

At the time of claim payment in Corona Kavach, it is an indemnity based insurance policy where only the loss faced by the insured is paid whereas in the case of Corona Rakshak the entire sum insured is paid after the sum insured is paid by the insurance company the policy gets terminated.

Corona Kavach has a special add on where insured will get the benefit of 0.5% on every coverage for a claim which is not available in the case of Corona Rakshak policy.

Now, let's look into the similar aspects of these policies-

Waiting Period:

It is the period between the date of issuing the insurance policy and date from where the claim can be paid. If the insured suffers from the disease in the waiting period, he won't be eligible to get the claim amount. So, the waiting period for both the policies is 14 days. In these 14 days anything happens then the claim is not paid to the insured.

Pre- Hospitalization and Post-Hospitalization Coverage:

The insured will get Pre-Hospitalization coverage for 15 days before getting hospitalized and after getting discharged from hospital coverage will be provided for 30 days.

The policy in both cases can be issued for 3.5 months, 6.5 months and 9.5 months/

Both policies cover AYUSH treatment. AYUSH stands for Ayurveda, Unani, Siddha, and homeopathy, whereas older insurance policies did not cover AYUSH treatments.

Earlier in the old insurance policies pre-existing disease was a prime exclusion, but while talking about the new policies pre-existing the disease is not considered to be exclusion and claim is paid in such situations.


In both, the situation claim will be paid on the similar grounds that involves treatment not done from the authorized lab or hospital, any material facts are not shared by the insured, claim is prior to the date of insurance policy and the insured person has a traveling history.