IRDA

Subject: Schemes

Context:

• Insurance Regulatory and Development Authority of India has announced guidelines on CoVID-19 standard benefit-based health policy and individual Covid-19 standard health policy.

Concept:

• IRDAI has announced Corona Rakshak policy which is a standard benefit-based policy and Corona Kavach Policy, a standard health policy which will be offered on indemnity basis and insurers have been asked to launch the product from July 10, 2020.
• Under indemnity health insurance plans, insurers cover the cost of medical expenses during hospitalization, while in defined benefit plans a lump-sum is paid irrespective of the actual hospital expense
• According to the guidelines by IRDAI, minimum sum insured for Corona Kavach Policy will be ₹50,000 and maximum sum insured would be ₹5 lakh. However, for Corona Rakshak Policy, the minimum sum insured would be ₹50,000 and maximum limit is set at ₹5 lakh.

IRDAI

• Insurance Regulatory Development Authority (IRDA) is a statutory body set up by the IRDA Act, 1999.
• It is an autonomous and apex body which has the responsibility to regulate and control the Insurance sector in India.
• Insurance Regulatory Development Authority (IRDA) was established after the recommendations of Malhotra Committee report of 1994. The committee had recommended for the establishment of an independent authority for the regulation of Insurance sector in India.
• As per the section 4 of IRDAI Act’ 1999, Insurance Regulatory and Development Authority of India has composition of a Chairman; five whole-time members; four part-time members, all appointed by the Government of India.