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IRDAI permits insurers to sell short-term Covid policies till Mar 2022

Regulator IRDAI on Monday allowed insurers to continue selling and renewing short-term Covid specific health insurance policies till March 2022.

IRDAI | health insurance policy

Press Trust of India  |  New Delhi 

Notwithstanding the growth in health premiums, insurers have seen elevated levels of Covid claims in the first three months of the financial year due to the second wave of the pandemic.

Regulator on Monday allowed insurers to continue selling and renewing short-term Covid specific health insurance policies till March 2022.

Amid rising number of cases in the country, the Insurance Regulatory and Development Authority of India (IRDAI) had last year asked all insurance companies to come out with 'Corona Kavach' policies (standard indemnity based health policy) and Corona Rakshak policies (standard benefit-based health policy).

Several insurance companies had come out with short-term products, which became popular because of lower premiums compared to regular health insurance policies.

In a circular, the regulator said all insurers are "permitted to offer and renew" short-term Covid specific health policies up to March 31, 2022.

Meanwhile in another circular, the said the exemptions granted general insurers for issuance of electronic policies as well as dispensing with physical document and wet signature have been extended up to end-March 2022.

The regulator had granted the relaxation last year after received representations from the insurance companies for exemption from the requirement to issue physical policy document and hard copy of proposal form in the wake of the Covid-19 pandemic.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, September 13 2021. 21:44 IST