The coronavirus outbreak has created panic among people about their insurance coverage. But don't fret. According to experts, the existing insurance policies generally cover all such cases unless specifically excluded. In order to file a claim for coronavirus infection, a policy holder needs to follow the same process that they follow during regular hospitalisation.

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Here's all you need to understand about your insurance policy's coverage in case of coronavirus:

Health insurance policies cover all kinds of respiratory disease, which means they cover coronavirus, provided the affected person does not have COVID-19 at the time of the purchasing the policy, say experts. One can choose to go with cashless claim facility or reimbursement facility depending upon the policy terms.

Also read: Here's how coronavirus impacts your financial health

"For cashless claim, a policyholder may choose to get admitted in a network hospital and take the necessary treatment by informing the third party administrator (TPA) within the hospital," said Amit Chhabra, head - health insurance, Policybazaar. In cashless claim, the policyholder does not pay any incurred expenses for the treatment of illness.

"While in reimbursement process, the policyholder may take treatment at any choice of hospital after informing the insurer and pay the incurred bills. All these bills are later reimbursed to the policyholder up to the sum insured after proper verification from the insurer," Chhabra explained. In any form of insurance, there are terms and conditions, exclusions, or waiting periods as per which claims are settled or rejected.

Also read: Coronavirus rattles market: If you are considering investing, you need to know this

For life insurance, assuming all terms and conditions are fulfilled, death benefit claims are entertained by insurance providers. "As long as the policy holder has disclosed all details correctly at the policy purchase stage, the death benefit claim is payable even if it arises out of coronavirus," said Adhil Shetty, CEO, BankBazaar.

In case of life policies with add-on benefits such as critical illness or terminal illness riders, the policyholder will have to satisfy the terms and conditions of the add-on to receive its benefits.

Another important thing to know is the adequate sum-insured. While there is yet to be a consensus on the treatment cost, Chhabra said that estimated sum insured of Rs 10 lakh per person is recommended.

First Published:Mar 16, 2020 3:29 PM IST