InvestorQ : What is the standard health insurance policy (Arogya Sanjeevani Policy)requirements as notified by IRDAI?
Anusha Savla made post

What is the standard health insurance policy (Arogya Sanjeevani Policy)requirements as notified by IRDAI?

Anushri Vasa answered.
2 years ago

The Insurance Regulatory and Development Authority of India (IRDAI), has recently issued a circular mandating health and general insurance companies to offer a standardized product to the policyholders. This product will take care of all the requirements of policyholders. The policy is named “Arogya Sanjeevani Policy” and no other name is allowed for the same. This plan will have all the basic mandatory covers as specified under the guidelines that will be uniform for the overall health sector.

Here are the details:

  • The minimum sum insured under this plan will be Rs 1 lakh and the maximum sum insured shall be Rs 5 lakhs.
  • The minimum entry age is 18 years and the maximum shall be 65 years. However, you can exit at any age. The policy is subject to lifelong renewability.
  • One can avail the policy for self, legally wedded spouse, parents, parents-in-law, dependent children.
  • The policy requires to be renewed annually.
  • The premium can be paid at any interval of time say monthly, quarterly, half-yearly or annually. Premiums are uniform for every interval. Premium to be paid is to be the same for every location.
  • For those paying premium annually, a fixed grace period of 30 days shall be allowed over the fixed due date for payment of premium.
  • The insured shall be allowed a period of 15 days to review the terms and conditions of the policy, and are allowed to cancel the policy if terms are not accepted till the end of said period (15 days).
  • Any sum insured shall increase by 5% in respect of each claim-free year provided the policy is renewed without any break subject to a maximum of 50% of the sum insured.

So, this is a great product at entry-level and should succeed in the market in the long-run. This policy has everything that suits the requirements of policy-holders and attracts them to take-up this policy. This product will also create competition among the health insurers and in turn, would lead to better health insurance products for the policyholders.