Did You Know Insurance Can Cover Claim For Covid Treatment At Temporary Hospital? Check Details Here

The directions of insurance regulator last year came as a breather for policyholder who are trying to meet the cost of hospitalisation amid the second wave of covid 19.

Image: PTI

With the covid-19 cases breaching new records every day, medical infrastructure in some states is almost on the verge of collapse with some facing a shortage of ICU beds. In response, the Centre is making efforts to ensure the availability of hospital beds for covid patients and directed the state governments to provide an additional supply of beds through temporary hospitals and isolation centres.

In such a crisis when Covid-19 patients are facing an acute shortage of beds, it raises another concern whether the health insurance policies, including the Corona Kavach, will cover the cost of treatment in case of treatment at a makeshift or a temporary hospital.

What’s the rule?

Last year in July, the Insurance Regulatory and Development Authority of India (Irdai) has notified that a makeshift or temporary hospital permitted by central or state government shall be regarded as a hospital or network provider for insurers to settle the claims.

The insurance regulator has said, “In order to ensure that the cost of treatment of covid-19 is covered as per terms and conditions of policy contract, a makeshift or temporary hospital permitted by central or state government shall be regarded as a hospital or network provider and insurers shall settle the claims."

This notification from the insurance regulator comes as a breather for policyholders who are trying to meet the cost of hospitalisation amid the second wave of covid 19.

The regulator also directed insurance companies to offer short-term health plans called Corona Kavach Policy and Corona Rakshak Policy covering hospitalisation expenses related to the treatment of covid-19. Individuals can buy such specific health cover to meet the expenditure such as the hospital costs.

Note that a policyholder diagnosed with Covid-19 and admitted into any such make-shift or temporary hospital on the advice of a medical practitioner or appropriate government authorities, notwithstanding the definition of hospital specified in the terms and conditions of policy contract, the treatment costs shall be settled by insurers.

Experts believe such a move will have a positive impact on the insurance industry and create awareness around taking insurance.