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General And Health Insurers To Offer Arogya Sanjeevani Policy From April 1, 2020

Mumbai, January 10: Insurance Regulatory and Development Authority of India (IRDAI) has mandated all general and standalone heath insurers to offer first of its kind a standard individual health insurance product (Arogya Sanjeevani Policy) with all the basic understandable features from April 1, 2020.
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The regulator also asked all the insurers to follow common policy wordings across the country. One can buy this standard product as an individual plan as well as a family floater plan according to one’s requirements. There will be no riders will be available under this plan. The minimum sum insured is Rs 1 lakh and the maximum sum insured is Rs 5 lakh for one year.
Gurdeep Singh Batra, Head- Retail Underwriting, Bajaj Allianz General Insurance comments, “The standard individual health insurance product will help us enhance the insuring population. Thus, making it an attractive avenue for people as it will not only be easy on their pocket and will also give them enhanced coverage. Moreover, since all the insurers have been directed to have the same coverage and exclusions, it will be simpler for customer to understand.”
The policy offers a lifelong renewable option as well. The premiums can be paid yearly, half-yearly, quarterly, or monthly. The minimum entry age for the principal insured is 18 years and the maximum entry age is restricted to 65 years. The policy offers 5 per cent co-payment clause, which applies to all age groups.
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The product will have 24 months and 48 months of waiting period depending upon the types of illness. The premium is not specific to any geographic location. The pricing would be standard pan India. 
“The product can help to increase adoption of health insurance, thereby providing people with greater accessibility to better healthcare treatment which is the basic right of each and every citizen of the country. As the guideline also states individual insurers can set their pricing and underwriting norms, the customers can look forward to competitive offering from the industry.” adds Anand Roy, Managing Director, Star Health and Allied Insurance.
This policy also offers no claim bonus of 5 per cent and up to 50 per cent of the sum insured for each claim-free year. However, the premiums paid for this policy are not eligible for deduction under Section 80D of the Income Tax Act. This policy does not cover maternity benefit.
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Prasun Sikdar, Managing Director and Chief Executive Officer, ManipalCigna Health Insurance, says, “The Arogya Sanjeevani policy will offer a health cover which is likely to address the basic health needs of consumers. The simplified product will enable coverage for the basic health needs of the first time consumers and help them experience a simplified process and avail the standard benefits of health insurance. ”
Some of the exclusions are treatments related to weight loss, change of gender, plastic surgery, hazardous adventure sports, breach of the law, sterility and infertility, maternity expenses, war, chemical or biological attack.
Industry experts believe that the new product will help to increase health insurance penetration and accessibility in the country by simplifying the decision making process for consumers.
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