6 Ways Health Insurance in India Has Changed With the COVID-19 Pandemic

The COVID-19 pandemic changed health insurance in India in many ways. Treatment for COVID-19 became a part of health insurance policies, specific COVID-19 health insurance plans were introduced by insurers, purchase of health insurance became easy, treatment from home could be claimed, claims could be filed online, and a larger number of families understood the need for health insurance.

6 major changes to health insurance after COVID-19

Let's look at the six most significant changes to health insurance since COVID-19.

1. COVID-19 became a covered illness

IRDAI directed that all health insurance policies, whether individual or group health insurance plans, must cover COVID-19 hospitalisation costs. A pandemic cannot be considered an exclusion clause in health insurance plans, hence patients admitted due to COVID-19 will be eligible to claim all expenses, including room rent, ICU charges, oxygen charges, medicine and physician expenses.

2. COVID-specific health plans were introduced

Corona Kavach and Corona Rakshak were two standard COVID-specific health products that IRDAI made every insurer offer during the pandemic. These plans were created to give people quick and affordable financial protection against COVID-19.

Corona Kavach covered hospitalisation, pre- and post-hospitalisation, home care treatment, AYUSH treatment, and costs of PPE kits, gloves, and masks. Corona Rakshak paid a single fixed amount once the insured tested positive and was hospitalised for at least 72 hours, regardless of the actual bill.

3. Buying health insurance became easier

Before the pandemic, buying health insurance often meant filling out paper forms or meeting an agent. However, during the coronavirus pandemic, the whole procedure has become much easier, as now people can compare the plans, do the e-KYC/ video KYC, provide their documents online and purchase the policy right from the comfort of their homes. Additionally, many insurers use the OTP/email verification process instead of requiring a physical signature.

4. Telemedicine and home treatment became covered

The pandemic changed the way people received medical care. Since many patients couldn't visit hospitals, insurers started covering telemedicine consultations and home treatment for COVID-19. If a doctor advised treatment at home, many health insurance plans, including Corona Kavach, covered eligible expenses as per the policy terms. This made it easier for people to get the care they needed without being admitted to a hospital.

The shift meant that a patient advised home isolation with monitoring could still claim for oxygen support, nursing, medicines, and doctor visits at home, subject to a valid medical prescription.

5. Health insurance went digital

Claims processing and policy purchase moved almost entirely online during the pandemic. With lockdowns limiting physical visits, insurers made the cashless claims process, online document submission and claims tracking through apps possible, and IRDAI encouraged quicker processing of COVID-19 claims.

6. More families chose health insurance

Health insurance awareness increased significantly due to the pandemic. People began requesting more health insurance coverage as they witnessed large hospital bills. This showed up in buyer behaviour in several ways:

• More first-time buyers purchased individual and family floater health plans rather than relying only on employer cover.

• Buyers began choosing higher sums insured to account for expensive intensive care.

• Interest grew in add-ons such as consumables cover, since items like PPE kits and gloves accounted for a large share of COVID bills.

Read our complete guide to COVID-19 insurance coverage and benefits.