IRDAI relaxes standard health policy norms; Non-life insurers can offer Arogya Sanjeevani Policy before April 1

Insurance Regulatory and Development Authority of India (IRDAI) on January 24, 2020, permitted non-life insurers to sell the standardized health insurance policy (SHIP) before April 1, 2020.

Indian insurance regulator in its circular dated January 24, 2020, said General and Health insurers can offer the 'Arogya Sanjeevani Policy' - the standard health insurance policy before April 1, 2020. It said all general and standalone health insurers (except ECGC, AIC) selling health insurance policies should offer 'Arogya Sanjeevani Policy' on or before April 1, 2020.

The regulator also said those insurers currently not offering indemnity based health insurance policies will have to offer 'Aroygya Sanjeevani Policy' as and when they start selling the former product.

The Insurance Regulatory and Development Authority of India (IRDAI) had earlier asked all general and health insurance companies to offer a Standard Health Insurance Product from April 1, 2020, onwards.

The Standard Health Insurance Product is expected to take care of basic health needs, carry similar policy wordings and enable seamless portability among the insurers. The new standard health policy is expected to make the buying experience much simpler for the individuals.

This is an attempt by the insurance regulatory to ensure uniformity in health policies and this standard health insurance product is expected to take care of the basic health needs of people and make the buying experience much simpler for them. The move looks to push insurance companies into taking this up seriously and implementing these norms across all their health insurance policies. With this IRDAI aims to ensure that policyholders know what they're getting to at the time of buying a cover.

About 'Aroygya Sanjeevani Policy'

It is a first of its kind standard health insurance product that will take care of the basic requirements of the policyholders. Key features of the Arogya Sanjeevani Policy:

It is a health insurance policy that will take care of the basic health needs of people.

It is a standard product with common policy wordings across the industry

It will have a basic mandatory coverage as specified under the guidelines and it will be uniform across the health insurance sector.

It will be provided on an indemnity basis and will work on a reimbursement basis.

It will not be combined with defined benefit-based insurance covers such as critical illness covers and so on.

Some common mandatory coverage will be hospitalization expenses, pre-post hospitalization, Ayush treatment and cumulative bonus amongst others.

It will be available on both individual lives and Family Floater basis. The Minimum and maximum sum insured in the Arogya Sanjeevani Policy will be Rs1 lakh and Rs5 lakh respectively.

The minimum and maximum entry age will be 18 and 65 years while for children under Family Floater policies, it will be 3 months to 25 years. The policy can be availed for self and the following family members:

1. Legally wedded spouse

2. Parents and parents-in-laws

3. Dependent children (i.e., natural or legally adopted) between the age of 3 months and 25 years. If the child is above 18 years of age and is financially independent, he or she will not be eligible for coverage in the subsequent renewals.