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Fixed benefit or indemnity health plan, which one to choose for covering COVID?

Fixed benefit or indemnity health plan, which one to choose for covering COVID_-(A)

Coronavirus cases are on the rise with no relief in sight, as India is expected to have the highest number of cases in the world. With a vaccine still in development, people are considering health insurance plans to meet their immediate financial needs if they test positive for the coronavirus and require hospitalization. Therefore, health insurance has become important during these trial periods.

Standard health insurance covers COVID-related hospitalizations and treatments. However, the cost of consumables such as gloves, disinfectants, masks, etc. they are not covered by a normal policy. Because these costs are substantial, there would also be significant personal expenses incurred after purchasing health insurance. Also, home treatments for COVID may not be covered by health insurance. With these factors in mind and the need for COVID health insurance, two new plans were launched: Corona Kavach and Corona Rakshak.

These two policies cover claims related to COVID. While the first is a compensation policy, the second is a fixed benefit plan. Does this confuse the individual as to which plan to choose: compensation or fixed benefit?

Health insurance plans are those that cover the actual medical costs incurred, while fixed benefit plans pay a lump sum in case of damages. While the hospital bills would be covered by Corona Kavach, Corona Rakshak would pay a lump sum if you suffer from coronavirus and are in hospital for three consecutive days. So which one should you choose?

Let’s analyze the options in different situations:

If you already have a health plan

If you have already purchased health insurance, it partially covers COVID-related hospitalizations. For full coverage, you can opt for the Corona Kavach plan and cover all medical costs if you are in the hospital for 24 hours or more.

Alternatively, you can buy Corona Rakshak and make a flat fee profit. This advantage would help you:

  • Additional medical expenses that are not covered by your health insurance
  • Lifestyle when you feel uncomfortable
  • Any EMI loan that you are unable to repay due to job loss, salary reduction, or loss of income due to business closure.

In fact, a Corona Rakshak policy would make more sense in these cases, as it offers comprehensive coverage of your financial needs if you suffer from Coronavirus.

If you don’t have health insurance

If you don’t have a contract, opt for a Corona Kavach plan. The plan would cover your hospital costs for COVID with a short waiting period of 15 days. With other normal compensation plans, this initial waiting period can be as long as 30 to 90 days, which would not be possible for COVID, which is spreading so rapidly. For your short-term needs, you can opt for Corona Kavach and bear the hospital costs incurred by COVID. However, you must also obtain comprehensive and regular health insurance to cover other illnesses and injuries.

Additionally, a Corona Rakshak policy can be purchased to receive full financial support for other expenses you may incur due to COVID. While the Kavach policy covers your hospital expenses, the Rakshak policy covers any other expenses you may incur.


Although Kavach and Rakshak are designed specifically for COVID, the choice between the two is ultimately up to you and whether or not you have an existing health plan. If you have an existing health plan, Corona Rakshak would be a good solution. If you don’t have it, choose Corona Kavach and add a Corona Rakshak plan to it. The premiums for these two policies are quite low. Therefore, you can also choose both plans for full coverage. To assess your needs and then make a choice.


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