Corona Kavach health insurance policy evokes good response: Insurers

Corona Kavach, which was launched on July 10 and is being offered by both general and health insurers, is a standard health insurance policy created to meet the treatment requirements for coronavirus.

Amid spurt in Covid-19 cases in the country, Corona Kavach health insurance policy has evoked good response within days of its launch by almost all insurers.
Corona Kavach, which was launched on July 10 and is being offered by both general and health insurers, is a standard health insurance policy created to meet the treatment requirements for coronavirus.

The term of the policy ranges from three-and-a-half months to nine-and-a-half months, with maximum insured amount at Rs 5 lakh.

The Insurance Regulatory and Development Authority of India (Irdai) has given a green signal to all general and health insurers to launch Corona Kavach policy to cover medical expenses of the Covid-19 positive patients.

"The response has been tremendous as people are quite eager to buy these plans. Since these plans have gone live on the PolicyBazaar's website, the company has been selling 300-500 policies per day," said Amut Chhabra, Head-Health Insurance, Policybazaar.com.

Most customers buying these plans are young individuals, he said, adding that "the policies are very much affordable like Rs 208 monthly, which is a fairly cheap amount." Observing that the response to the Corona Kavach is from across the country, he said, the policy is "following the same trend as the corona situation right now in the country with people from Maharashtra, Tamil Nadu, Karnataka, Delhi NCR showing massive interest in the newly launched plans".

Subramanyam Brahmajosyula, Head, Underwriting and Reinsurance, SBI General Insurance Company, said the provision to cover other members of the immediate family under the family floater option and home care treatment expenses are some of the features which are generating considerable interest.

Coronavirus: Exporters seek duty reduction, logistics support from Centre

Meanwhile, Irdai was asked to review existing insurance products to ensure risk cover against loss because of abnormal delay in delivery of shipments.

Industry and exporters bodies on Thursday sought logistics support and duty reduction from the government to withstand the onslaught of the coronavirus outbreak (COVID-19).

At a meeting called by the commerce department, they said products that rely on imports have been affected by the outbreak.

Meanwhile, the Department of Financial Services (DFS) has asked the Insurance Regulatory and Development Authority of India (Irdai) to review existing insurance products to ensure risk cover against loss because of abnormal delay in delivery of shipments. Irdai has also been asked to modify the terms and conditions of such policies, if necessary.

Ravi Sehgal, chairman of Engineering Export Promotion Council, said there were about 30-40 per cent engineering products that were seeing increase in exports, but there were others that had imported components, and these were affected. Shipments to Iran, Italy or Southeast Asia were impacted, he said.

Sources said that for auto parts, ships were taking too long and this was affecting the production cycle, and the industry would have to spend more on air freight. “We have sought 5 per cent duty reduction to offset part of air freight cost. As for electronics, the stock will be depleted by April and a plan needs to be drawn up now,” one of those who attended the meeting, chaired by Minister of State for Commerce and Industry Som Prakash, said.

Sources said some firms had imported plant and machinery but could install these because of a lack of professionals thanks to travel restrictions. “Once it resumes, we request faster clearance for these professionals,” one person said.

Meanwhile, DFS advised all public sector undertakings to set up special cells to provide full assistance to industry segments and micro, small and medium enterprises and process their requests with sensitivity. Banks were also requested to provide support to units that were identifying opportunities for import substitution

Irdai asks insurers to give details on exposure to DHFL, IL&FS, ADAG

All the four entities, for which data was sought by Irdai on October 9, have been downgraded by credit rating agencies recently.

The Insurance Regulatory and Development Authority of India (Irdai) has sought data from companies on their exposure to Infrastructure Leasing & Financial Services (IL&FS), Dewan Housing Finance Corporation (DHFL), Indiabulls, and Anil Dhirbubhai Ambani group companies, sources aware of the development said.

“The regulator perhaps wants to see the strength of the insurance companies," said the chief executive officer of a life insurance company. All the four entities, for which data was sought by Irdai on October 9, have been downgraded by credit rating agencies recently.

“Usually, it is left to the insurers on how they deal with downgraded entities. But this may have been done to find if there is any over exposure the insurers have against their asset base," said a former member of Irdai.

When an entity is downgraded, insures' investment in such entities is clubbed under the unapproved investment kitty and the insurers are allowed to have 10 per cent of their investment in the unapproved investment.

“If the 10 per cent is breached, there might be some problem, but so far the 10 per cent threshold has not been breached by any insurer," experts said.

There might be concern on the solvency of insurers having exposure to the four entities, the former member of Irdai quoted above said. If such a situation arises wherein the rating downgrade of an entity threatens the solvency margin of an insurer, the insurer has to infuse fresh capital to maintain a solvency margin of 1.5.

The Irdai had in the past asked insurers with exposure to IL&FS to provide for their exposure. A lot of insurers including the state-owned behemoth Life Insurance Corporation have exposure to IL&FS.

Business Standard