IRDAI Allows Short-Term Health Policies For COVID-19

IRDAI Allows Short-Term Health Policies For COVID-19
IRDAI Allows Short-Term Health Policies For COVID-19
PTI - 23 June 2020

New Delhi, June 23: Amid mounting COVID-19 cases in the country, regulator IRDAI on Tuesday allowed the health and general insurers to offer short-term health insurance policies that will give coverage against the coronavirus infection.

With an objective of making available insurance protection to various sections of people in the prevailing COVID-19 pandemic, it is considered that short-term health insurance policies providing coverages specific to COVID-19 disease is the need of the hour, it said in a circular.

Accordingly, all insurers (life, general and health) are allowed to offer COVID–19 specific short-term health insurance policies subject to the guidelines, said the Insurance Regulatory and Development Authority of India (IRDAI).

"Short-term policies may be issued for a minimum term of three months to a maximum term of eleven months.

"In between three months and eleven months, the policy term shall be in multiples of completed months," it said while issuing the guidelines.

However, a policy term less than three months is not permitted.

IRDAI asked the insurers to devise inclusive short-term health insurance products "where waiting periods are part of the product, such waiting period shall not exceed 15 days".

Life insurers are permitted to offer only benefit based short-term health insurance policies while general and health insurers can offer both indemnity based and benefit-based policies.

The guidelines will remain valid for issue of short-term policies till March 31, 2021 unless extended further.