Insurance and COVID 19

Subject: Economy

Context:

Insurance Regulatory and Development Authority of India (IRDAI) has wanted to arrive at a ‘standardized cost structure’ for treatment of the pandemic with COVID-19 patients running up high bills in private hospitals.

Concept:

• Currently standard Covid-19 insurance product which includes PPE kits and other consumables are not part of normal health insurance policy.
• As of now, private hospitals which have Covid-19 wards charge high rates with treatment costs ranging from Rs 3-8 lakh. “While government hospitals do not have adequate bed capacity to deal with patient load, the common man is unable to bear the expenses of a private hospital and especially a super speciality for Covid-19 treatment.
• In a communication to insurers, the General Insurance Council said the proposal under discussion entailed arriving at a negotiated rate for all elements associated with Covid treatment in a hospital.

General Insurance Council

• The General Insurance Council has been constituted under section 64C of the Insurance Act, 1938 since 2001 by the Insurance Regulatory and Development Authority of India (IRDAI).
• The General Insurance Council is an important link between the Insurance Regulatory and Development Authority of India and the non-Life insurance industry.
• It also pushes for the Industry’s issues with the Government.
• While the Council plays the role envisaged for it by the Insurance Act, it also facilitates overall growth for the industry in a fair and equitable manner in the interest of all stake holders.