IRDAI has released an exposure draft for a standard vector-borne disease health policy which will have a minimum sum assured of Rs 10,000 and a maximum of Rs 2 lakh.
Insurers will soon be allowed to offer specific insurance cover to the public for the treatment of vector-borne diseases like dengue, malaria, and chikungunya.
Policyholders would be able to choose to protect themselves against any of the diseases or a combination of such vector-borne diseases. And, insurers shall set the price for every covered disease separately and have been advised by the regulator to offer discounts as per the underwriting policy for opting for various disease combinations.
As per the proposal, the product shall be offered for a fixed term of one year with a waiting period of 15 days.
The insurance policy will cover the treatment of dengue fever, malaria, filaria (Lymphatic Filariasis), kala-azar, chikungunya, Japanese Encephalitis, and Zika Virus, it said, adding the stakeholders can send their comments on the exposure draft to IRDAI by November 27.
According to a last-year report by the World Health Organization (WHO), these diseases account for more than 17 per cent of all infectious diseases. Vector-borne diseases cause more than 7 lakh deaths annually, the report states. Additionally, in over 128 countries more than 3.9 billion people are at risk of contracting dengue, with an estimation of 96 million cases per year. The cost of treatment for dengue can range anywhere from Rs 25,000 to Rs 70,000. Therefore, having a vector-borne disease plan in place will help the customers to protect themselves against the vector-borne disease. Vector-borne diseases such as dengue, malaria have always been common in India, however, people take it lightly in the initial phase.
The standard cover entails one base cover which will be offered on an indemnity basis and at most two optional covers which will be offered on a benefits basis. Also, the total amount payable in respect of base and optional covers shall not exceed 100 per cent of the sum insured during a policy period.
“The premium payable towards optional cover shall be specified separately so as to enable policyholders to choose and pay based on the need”, Irdai said. Under the base cover, the hospitalization expenses incurred by the insured person for the treatment of vector-borne diseases will be covered, where room, boarding and nursing expenses of up to 2 per cent of sum insured for the sum insured above Rs 20,000 and a fixed amount of Rs 500/day for sum insured up to Rs 20,000 will be provided. It will also cover costs related to medicine, PPE kits, gloves, and masks among other things.
Also, expenses on hospitalization for a minimum period of 24 hours will be admissible. For the intensive care unit, cost upto 5 per cent of sum insured above Rs 20,000 and a fixed sum of Rs 1000/day for the sum insured up to Rs 20,000 will be covered. Also, ambulance charge of a maximum of Rs 2,000 will be covered.
