IRDAI extends timeline for insurers to sell short-term covid policies

Regulator IRDAI on Monday allowed insurers to continue selling and renewing short-term Covid specific health insurance policies till March 2022. Amid rising number of coronavirus cases in the country, the Insurance Regulatory and Development Authority of India (IRDAI) had last year asked all insurance companies to come out with ‘Corona Kavach’ policies (standard indemnity based health policy) and Corona Rakshak policies (standard benefit-based health policy).

Several insurance companies had come out with short-term products, which became popular because of lower premiums compared to regular health insurance policies. In a circular, the regulator said all insurers are “permitted to offer and renew” short-term Covid specific health policies up to March 31, 2022 Meanwhile in another circular, the IRDAI said the exemptions granted general insurers for issuance of electronic policies as well as dispensing with physical document and wet signature have been extended up to end-March 2022.

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The regulator had granted the relaxation last year after received representations from the insurance companies for exemption from the requirement to issue physical policy document and hard copy of proposal form in the wake of the Covid-19 pandemic.