General Insurance Council (GIC) -- the apex body for non-life insurers -- has asked all insurers to come up with a standardized insurance product for COVID-19, with the sum insured ranging from Rs 1 lakh to Rs 5 lakh.

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Unlike other health policies that mostly cover hospitalisation expenses, the specialised cover will include the cost of treatment during quarantine and cash payment for incidental expenses.

“The standard individual COVID-19 health product will have basic mandatory cover as specified and will be uniform across the market. Only two add-ons will be allowed to offer along with the standard COVID-19 product,” GIC said.

As per GIC, if the insured person is quarantined due to diagnosis or suspected infection of COVID-19, then the company will have to pay 1 percent of sum insured per day subject to maximum up to Rs 3,000 per day. Any one of the COVID-19 hospitalisation cover or quarantine cover will be payable at a time.

The company will pay 0.5 percent of sum insured per day for every completed 24 hours of hospitalisation for treatment if a person tests positive for COVID-19.

"The premium payables towards these two add-ons will be be specified separately so as to enable policyholders pick, choose and pay based on the need," GIC said.

According to Amit Chhabra, Head of Health Insurance at Policybazaar, the guidelines come as a huge relief to many policy seekers who are unable to invest in higher sum insured plans.

"This standard COVID specific plan is a plan for the common man. It is the best option available for customers who are unable to afford expensive comprehensive health plan," he added.