IRDAI Allows Insurers To Sell Short-Term Health Policies Covering COVID-19

Representative Picture

New Delhi: With the health and security of citizens in mind amid the COVID-19 pandemic, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced a slew of regulations in recent months.

The good news for uninsured people is that the IRDAI has issued draft regulations whereby health and general insurance service providers may approach customers for standard indemnity and COVID-19 specific plans with fixed benefits.

In other words, the national regulator has granted permission to service providers to offer short-term plans to specifically cover the COVID-19 disease.

The IRDAI issued a circular saying short-term policies for COVID-19 coverage was most needed at this juncture. They have allowed the insurers to sell health policies with terms ranging from 3 months to 11 months.

This will help people who need hospitalization after testing positive for coronavirus. The cost of treatment for the infection varies, with private hospitals in some metros coming up with exorbitant bills in a number of cases.