The insurance regulator is permitting non-life and health insurers to sell the standardised health insurance policy, called Arogya Sanjeevani Policy. prior to 1 April 2020. This is earlier than previously decided.
In a circular dated 24 January 2020, the IRDAI said that insurers currently not offering indemnity based health insurance policies will have to offer the Aroygya Sanjeevani Policy as and when they start selling the former product.

Earlier, the IRDAI had mandated non-life insurers to offer the standard health insurance policy with effect from 1 April 2020.

The Arogya Sanjeevani Policy will have standard features across all insurers which offer it. The regulator says that the uniform features mean that there would be no chance of customers getting confused when comparing the health insurance plans of different insurance companies.

The policy provides for basic healthcare needs, carries similar policy wordings and allows seamless portability among the insurers. The premium, however, may be set by the insurers on their own.

Existing health insurance policies in market are quite complex at times with fancy features and differ from each other so much that a normal investor finds it very difficult to choose a suitable policy.

The features of the Arogya Sanjeevani Policy will include:

Minimum and maximum sum insured will be INR100,000 ($1,402) and INR500,000 respectively.

Minimum and maximum entry age will be 18 and 65 years while for children under family floater policies, the age will be 3 months to 25 years.

Arogya Sanjeevani Policy will only be an indemnity policy, working only on a reimbursement basis.

There will not be any deductible but a co-payment of 5% applies.

No add-ons and optional covers will be available.

Some common mandatory coverage will be hospitalisation expenses, pre-post hospitalisation, and Ayush treatment.


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