Health insurance alert! Arogya Sanjeevani Policy: IRDAI modifies norms, check circular details and FULL TEXT

In good news for health insurance beneficiaries, insurers can now offer a sum insured above Rs 5 lakh under 'Arogya Sanjeevani Policy'. In a major development, Insurance Regulatory and Development Authority (Irdai) has 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," the IRDAI circular said. Irdai further said insurers can launch the modified policy with immediate effect.

Arogya Sanjeevani Policy

The popular Arogya Sanjeevani Policy covers hospitalisation, pre- and post-hospitalisation, AYUSH treatment, and cataract treatment. The policy is a standardised insurance product offering to take care of the basic requirements of policyholders.

Here is FULL TEXT of IRDAI's circular:-

Guidelines on Standard Individual Health Insurance Product

To

All General and Standalone Health Insurers (except ECGC, AIC)

Re: Guidelines on Standard Individual Health Insurance Product

1. Attention is drawn to Clause 7 of Section C of Guidelines on Standard Individual Health Insurance Product (Ref: IRDAI/HLT/REG/CIR/001/01/2020 dated 01.01.2020) wherein General and Health insurers are allowed to offer Sum Insured options ranging from minimum Rs.1,00,000/- to maximum of Rs.5,00,000/- (in the multiples of 50,000/-)for “Arogya Sanjeevani Policy”.

2. Whereas the standard policy is required to be offered by all General and Health insurers for sum insured between Rs.1 lakh and Rs.5 lakhs, to further facilitate the general public, insurers are hereby allowed to offer minimum sum insured less than Rs.1,00,000/- and maximum sum insured greater than Rs.5,00,000/- subject to the underwriting policy of the Insurers.The Sum insured options shall be offered in the multiples of Rs. 50,000/-(fifty thousand) only.

3. The tables of premium rates for revised sum assured slabs shall be filed in terms of Clause C (10) of “Guidelines on Filing of Minor Modifications in the approved Individual Insurance Products offered by General and Stand Alone Health Insurers on Certification Basis” (Ref No: IRDA/HLT/CIR/MISC/151/09/2019 dated 20th September,2019).

4. Insurers may launch the modified version of the “Arogya Sanjeevani Policy” after filing the same on Certification Basis as referred to at Para (3) aboveand on getting the UIN from the Authority. The use of the name “Arogya Sanjeevani” and the “Use and File” procedure are permitted only if the standard terms and conditions of “Arogya Sanjeevani’ product are followed.

5. This will come into force with immediate effect.

6. This has approval of the competent Authority.

D V S Ramesh,
General Manager (Health)