Question

does insurance cover and epidemic like coronavirus

Answer 1

The World Health Organization (WHO) has declared the COVID-19 or coronavirus as pandemic. The virus has spread to all corners of the world, infecting more than 5 lakh people and killing close to 24, 000. In India (at the time of publishing this story), more than 5000 people have been tested positive for coronavirus and more than 150 people have died, according to the Ministry of Health and Family Welfare.

So, now the question rises, will a life insurance policy cover the death of a policy cover the death of a policyholder due to coronavirus? Also, will you be able to get a life insurance policy after contracting the virus?

Existing life insurance policyholders
If the individual who passes away due to the coronavirus had a life insurance policy, the nominee of the policy will get the sum assured as the death benefit.

"If the deceased person had a life insurance policy, then the nominee or the beneficiary nominee must know that the death caused by health-related issues are generally covered under a life insurance policy including term insurance," This means that when the insured person dies, the death benefit is paid to the nominee or the beneficiary nominee after a valid life insurance claim is filed.

BUT

While most health insurance policies in India are providing cover for the coronavirus infection, you may not be able to get a claim for its treatment in the following scenarios.

Your claim will also be limited by the maximum sum insured by your health insurance policy.

• If you are not hospitalised for at least 24 hours Health insurance claim due to coronavirus will be payable only if you are hospitalised for at least 24 hours. However, if you are not hospitalised, then your policy may not cover the claim as most of the indemnity type health insurance policies (mediclaim) in India do not cover outpatient treatment.
  
  

• If the disease is declared as epidemic/pandemic Your insurer might not settle a claim under your health insurance policy if the disease is declared as an epidemic or pandemic by the World Health Organization (WHO).
• If you are going for a planned treatment Over the past four weeks, if you have been suffering from any respiratory-related disease, then your claims under a regular indemnity type health insurance policy or a specific coronavirus insurance policy might not get settled. For instance, if you have been suffering from severe cough, respiratory diseases, breathlessness, flu over the past few days and you plan to take treatment for it, your policy might not cover even if it results in symptoms for coronavirus disease/infection.
• If you contract the disease within the policy waiting period The insured will not get claim filed for treatment of a disease within the policy waiting period of a health insurance policy if the disease treatment is excluded within the waiting period. Typically, most policies exclude several kinds of treatment in the waiting period of the policy.
• You or family member recently travelled to affected countries n the case of health insurance policy, Bathwal said, "If you are travelling from a coronavirus affected country and diagnosed positive, you will be covered under regular indemnity health insurance policy as long as you are being quarantined in India."