Insurance Regulatory and Development Authority of India (IRDAI), the insurance sector regulator has hiked the maximum cover under the standard health insurance plan – Arogya Sanjeevani Policy – from Rs 5 lakh to Rs 10 lakh and also has expanded the sum insured bands under the policy to between ₹50,000 and ₹10 lakh in multiples of ₹50,000 as against the previous range of Rs 1 lakh – Rs 5 lakh.
- Insurers can offer the revised sum insured with effect from 1 May, 2021 or earlier.
Objective: To bring more people under the ambit of health insurance by enhancing the coverage available under Arogya Sanjeevani Policy.
Latest Modifications in the policy by IRDAI:
- IRDAI made it compulsory for insurers to offer a sum insured of up to ₹10 lakhs, starting from ₹50,000 and in multiples of ₹50,000.
- It led the companies to file premium rates for the revised sum insured as per the guidelines on the filing minor modifications.
- Regulated that the unique identification number (UIN) allotted to a product will be retained after the modifications
- Allowing higher sum insured options will render the product a viable option for metros and tier-1 cities commented by Sanjay Datta, chief-underwriting, claims and reinsurance, ICICI Lombard General Insurance.
- In January 2020, the Arogya Sanjeevani policy with a maximum sum insured of up to ₹ 5 lakh and a minimum of ₹1 lakh.
- In July 2020, amid COVID-19, the insurance watchdog had allowed insurance companies to offer a sum insured less than ₹1 lakh with no upper limit.
- The age to get this policy must lie between 18 years to 65 years of age.
Rate of Arogya Sanjeevani Policy:
- Arogya Sanjeevani comes with a 5% co-pay and 2% sub-limit on room rent. A 5% co-payment clause means that you will pay 5% of the claim amount and the insurer will pay the rest.
- The policy covers room, boarding and nursing expenses but only up to 2% of the sum insured, subject to a maximum of ₹5,000 a day.
Recent Related News:
On February 12, 2021, Star Health & Allied Insurance Co. Ltd launched its Arogya Sanjeevani policy on PhonePe. This launch enables all the users of PhonePe to protect their families from financial burdens in case of any medical emergency.
About Insurance Regulatory and Development Authority of India (IRDAI):
A statutory body formed under the Insurance Regulatory and Development Authority Act, 1999 (IRDAI Act 1999) on the recommendations of the Malhotra Committee
Establishment – 1999(incorporated- 1st April 2000)
Headquarters – Hyderabad, Telangana
Chairman – Subhash Chandra Khuntia