As the world drifts terribly in the midst of the Novel Corona or COVID-19 virus pandemic, let me give you details on hows and whats of insurance (both life & health) when such tragedy strikes an individual or an employee. We will elaborate on this basis FAQs.
Will my life insurance policy cover death by Coronavirus?
Life insurance (term, ULIPs or endowment plans) covers anything that causes death to the individual. The cause of death can be anything such as an accident, any illness including Corona. Life policies don't distinguish the type of death or the way of death. So, if you have family members or neighbors who could not make it, then kindly contact your respective life insurer immediately. The insurance regulators have made strict instructions to companies to settle such claims on an immediate basis (especially if the death is by coronavirus).
Is Coronavirus a critical illness?
The disease will be a ‘Critical illness’ depending on whether your insurer has classified the same in their list in their policy or that product. Coronavirus is a simple flu with low death rates, hence the same can be excluded by your insurer. Still, you may consult your agent or the insurance company.
Will my health insurance or medi-claim cover treatment costs due to Coronavirus ?
Let us first clarify to you the difference between health insurance and medi-claim benefits.
Health Insurance is general health coverage against a list of diseases specified in your policy document (the bunch of papers received after you buy insurance). These are usually illnesses that carry a huge cost to treat like Cancer or illness that are critical to life.
Medi-claim insurance is a cheaper alternative to Health Insurance, where only medical expenses or hospitalization expenses are reimbursed or made free by the hospital, only if they have tie-ups with the insurer / Third Party Administrator.
So, if Corona or related diseases are mentioned in your policy document, then you shall be eligible to make claims in Health Insurance. Whereas for medi-claim, it is not disease-specific, their concern is usually days spent in hospital and the associated medical expenses. But, please do check your policy document or with your insurer, that they provide medi-claim for pandemic cases, as Corona is declared as a pandemic.
Note: Both these policies usually have a waiting period attached to them. If the waiting period is 90 days then, it means that within 90 days from policy purchase you cannot make a claim against any disease.
How will I lodge my claims?
All insurers have a “Make a Claim Intimation” tab on their websites. There you need to fill all details and upload necessary documents and then the Insurers will call you at your registered phone number.
For the people who are less tech-savvy, can connect with their insurance agents for more details.
Should I buy a policy now to avoid any issue due to the Coronavirus?
Yes, you can buy a term plan or a health or a medi-claim policy in the midst (that will depend on which insurer has the infrastructure in place to sell). But you need to read the terms and conditions thoroughly, especially the exclusions. There are many insurance companies that are now providing cover towards Corona Virus. A humble request to please read the instructions before purchasing them.
Will the policy that has been provided by my employer help?
Employers generally provide both Life and medi-claim plans. As mentioned above, Life plans do pay on death, irrespective of the cause of death. Medi-claims will pay you based on the days spent in hospitals for any disease, but it has an upper limit. Get in touch with your employer’s HR team for details.
I am a gig worker (employed with start-ups or daily wage or commission-based income earners) and I don't know whether my employer covers us?
Immediately call your employer’s helpline number or read the terms and conditions that you might have signed at the time of joining or call up your Union staff, in case the Union has ensured the gig workers.
These are only an indicative list of questions. In case of any query or doubt, please feel free to specify in our comment section, and we shall be more than happy to answer them.