The IRDAI has approved 30 hospitalisation policies for Covid 19 (Corona). The sum assured varies from Rs 50000 to Rs 500000 in steps of 50000 . The terms available are for 31/2 months (105 days), 6 ½ months (195 days) and 9 ½ months (285 days). There are no sublimits. Almost all of the benefits are similar between the various Insurance companies but why do the premiums vary from company to company?
Age Band: All the policies are for the 0 to 65years age group and premiums increase with age. Some companies have more number of age bands eg 0-40, 41,50, 50-60 and 61 and over . Others might have just 0-40, 41-60 and above 60 yrs. When you are buying policies for a large number of persons , then depending on the composition of the age group the premiums will vary.
Direct Sale Discount: Some of the companies offer up to 15 % discount for direct sales whether some others might not provide any such discount. Most offer 5 or 10 percent discount. For availing this discount the purchase has to be direct with the Insurance company without any intermediary or agent.
Loading for Co-morbidities: Some companies have a loading of up to 30 % for co-morbidities. The listed co-morbidities for New India Insurance company are diabetes, hypertension cancer, COPD,heart disease, HIV, stroke and autoimmune disease . Most,however, do not have such loading. If the insured has any of these conditions , then the premium would be higher.
Family : Multiple Individual policies from the same family are given a discount which vary from 5 to 10 %
Discount for Female : Some Insurance company like the New India Company offers a five percent discount for females. This is , however, not a common discount.
Base Premium: The base premium vary tremendously between company to company and some like the Oriental Insurance Company and Future Generalii have their base premium on the lower side while others like Manipal CIGNA and GO DIGIT have their base premiums on the higher side.
Add On : The add on premium is for hospital cash which is usually 0.5% of sum insured for each day of hospitalisation and is usually available for a maximum of 15 days