Our Shaykh Abu Bilaal Al-Hadhramy- may Allah preserve him- was asked the following question on 1st Sha’ban 1441 (25th March 2020):
Question : The Questioner says: Is (the obligation of) washing and shrouding removed from the the one who has died from to the corona virus?
Answer : No, it is only removed from the martyr of the battlefield who dies directly in combat. Instead, he is buried in the clothes in which he was killed and not prayed upon, according to the correct opinion regarding prayer upon the martyr which is disputed between the scholars.
As for the one who is taken from the battlefield alive (and dies later); he is not treated in the manner as a martyr; (i.e. he is shrouded and prayed upon.)
There is no doubt that martyrdom is indeed attributed to them; the one who dies from an abdominal illness, an epidemic, by drowning or being crushed by a wall as well as everything else that has been mentioned in the textual evidences; these are martyrs in the hereafter.
But in regards to this life they do not take the ruling of the martyr of the battlefield. They are washed, shrouded and prayed upon.
Question : A Follow-up Questioner says : What if they fear the spread of the disease?
Answer : If they are fearful and certain that it will be passed on from him to them or believe that this is more likely; it is OK (not to wash him) due to this.
(In this case) they (only) bury and pray upon him or wash him from a distance.
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Translated by : Abu Sufyaan Saami ibn Daniel Al-Ghaani