New India Assurance provides Rs 50 lakh cover each to 22 lakh health workers

New India Assurance has issued personal accident policy cover worth Rs 50 lakh each for over 22 lakh public sector healthcare workers. The premium with respect to the policy is expected to be around Rs 128 crore.

The government had earlier said that death due to COVID-19, while providing healthcare services, would be treated as an accident. The Ministry of Health and Family Welfare had issued an order on March 29, which entrusted New India Assurance with the issuing of health cover. New India issued the policy on March 31 in the form of a tailor-made personal accident cover, which will be valid for the next 90 days, The Times of India reported.

Reports suggest this is the first time in the country's history that a personal accident policy is being issued to cover an infectious disease. Before, non-life insurance companies could provide life insurance for accident-related deaths. Life insurance companies only issue policies covering death due to natural circumstances.

Most of the treatment for coronavirus patients right now is taking place in government hospitals. The policy, therefore, only provides death benefits, New India Chairman Atul Sahai told the daily, adding New India had the capability to provide this insurance cover without needing any reinsurance support.

According to the Ministry of Health, the policy covers healthcare providers and community health workers who have come in close contact with COVID-19 patients during treatment. Private healthcare staff and workers are also detailed out in the order. As per the ministry, the aim of issuing this policy is to boost the morale of healthcare workers.

The number of coronavirus cases in the country has risen to 1,397 as of 10:30 pm on March 31. Globally, as many as 42,158 people have died while over 858,892 have been infected by the COVID-19 disease.

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