Hyderabad: Insurance regulator IRDAI on Tuesday modified the norms of 'Arogya Sanjeevani Policy' by allowing health insurers to offer minimum sum insured of less than Rs 1 lakh and maximum of greater than Rs 5 lakh.
As per the guidelines on 'Standard Individual Health Insurance Product', general and health insurers were allowed to offer sum insured options ranging from minimum Rs 1 lakh to maximum of Rs 5 lakh (in the multiples of Rs 50,000) for Arogya Sanjeevani Policy.
The norms have been modified to facilitate the general public, the Insurance Regulatory and Development Authority of India (IRDAI) said in a circular.
"...insurers are hereby allowed to offer minimum sum insured less than Rs 1 lakh and maximum sum insured greater than Rs 5 lakh subject to the underwriting policy of the insurers. The sum insured options shall be offered in the multiples of Rs 50,000 only," it said.
Speaking to ETV Bharat, Viral Bhatt, Mumbai-based personal finance expert said "The modification in ‘Arogya Sanjeevani Policy’ with regards to the sum insured is certainly good move as far as insurers are concerned. I believe the more options a customer has to choose from, the better it is for them to opt for a cover which suits their requirement. This move will allow insurers to offer a wider range of sum insured starting from Rs 50,000 and not limiting it to Rs 5 lakh on the higher side."
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IRDAI further said insurers can launch the modified policy with immediate effect.
The popular Arogya Sanjeevani Policy covers hospitalisation, pre- and post-hospitalisation, AYUSH treatment, and cataract treatment.
"Arogya Sanjeevani is IRDAI’s answer for health insurance to middle or lower income group who has limited fund availability. The low income earners may be not necessarily employees who are albeit covered under ESIC policy of the government. Therefore daily wagers or small shopkeepers may opt of Arogya sanjeevani which gives them with a basic coverage and keep them secured," Viral said.
"Moreover the policy is quite reasonably priced, so that a sole earner may opt for it initially to keep him and his family covered and later on may opt for bigger policies as well. In short it is a good entry level health insurance one may opt for which is fuss free, at the same time widely covered in terms of ailments at a very affordable rate," he added.
