Benefit-based Covid product to be priced higher than the indemnity one

The insurance regulator has revised its guidelines around the standard cover for the third time

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As far as the covid-19 standard benefit based policy is concerned, a lump sum benefit equal to 100 per cent of the sum Insured shall be payable on positive diagnosis of Covid-19, requiring hospitalisation for a minimum period of three continuous days

Subrata Panda Mumbai

5 min read Last Updated : Jun 24 2020 | 3:17 AM IST

In a fresh set of guidelines, the insurance regulator has asked general and health insurers to offer two products specifically for Covid-19 by July 15. One will be an indemnity-based product (Covid-19 standard health policy) and the other one will be benefit based product (Covid-19 standard benefit-based policy).

While the policy wordings and the benefits received will be uniform across all insurers, the pricing of the product has been left to the insurers. Experts say, the standard product will be cheaper than other comprehensive health products and the benefit based Covid product will be priced higher than the indemnity product.

Topics : Coronavirus health insurance policy Health Insurance health insurance cover