Thread by @themahavir

Thread alert.
1/ Had written a lonnnng post on health insurance for COVID19😷a couple of days back.

Some found it too long and technical, and did not read it.😐

So here's the same information in an easy to read, a thread.

Hope this is useful. Let me know

2/ Fixed Benefit Plans that pay a fixed amount of cash 💵💵 on being diagnosed positive for COVID 19 were helpful.

They could help insure the high deductions amounting to 25-40% of the total bill (Rs. 75K to 200K).

I had written about this:

3/ But these fixed benefit plans disappeared one after another🤦 - Maybe because they saw too many claims coming in.

I wrote about this here.

4/ The plans now available are😑

a) They either provide low coverage <or>
b) are reimbursement plans that are poor substitutes for a full health insurance cover.

Here's the summary of the plans available.

5/ Then IRDAI came into the picture 🥷and made it mandatory for insurance companies to provide a health insurance plan that includes specific covers for COVID 19 treatments.

6/ Corona Kavach 🛡️ is a reimbursement plan, but solves for all the gaps that led to the deductions we spoke about. #win

Here's how.

7/ But is there a catch?🪤

Yes, there is. Insurers don't have enough data to be able to provide this too-good-to-be-true cover.

8/ Hence it's very likely the product will be

a) Challenging to get (Stringent filters - declining highrisk cases who are most likely to get hospitalized)

b) Difficult to buy. (Expensive)

A Govt. insurer may provide it at affordable rates. Let's see.

9/ We are back to square one🔄🤦

So what should you do? You have to be #Atmanirbhar 🥋

a) Maintain an emergency fund, especially for the old.
b) Health Insurance of Rs. 10 L per adult.
c) Ensure your health insurance does not have room rent limits.
d) Take care of your health.

11/ Was there a better solution to this problem, you may ask?❓

IMHO, the government and IRDAI should not pressurize private players to participate in something so unpredictable, without financially protecting these companies from probable unforeseen losses.

12/ or the government should have directly stepped in and launched their own funded insurance for the general public.

Probably, Pradhan Mantri Covid Kavach Bima Yojana.

Hope this helps.

By the way, here is the long post I was talking about. beshak.org/blog/opinion/t…