In an effort to improve the health insurance penetration in India, IRDAI has asked all insurance companies to offer uniform health insurance policy ‘Aarogya Sanjeevani’ with standard features and conditions which are simple to understand.
Currently, all general and standalone health insurance companies have launched their Aarogya Sanjeevani Policies.
Talking about this policy, Anirudha Singh, Chief Underwriting Officer at Markel India, a reinsurance company said that the standard health policy was introduced to simplify offerings and reach out to wider audience. Currently, insurance companies offer health insurance products with host of features. Hence, it is difficult to compare policies for policyholders to make an informed decision, he said.
Prasun Sikdar, Managing Director and CEO, Manipal Cigna Health Insurance Company said, “Considering the growing medical inflation and the rise of infectious diseases like Coronavirus (Covid-19), having a health insurance coverage is a must for every individual and family. It’s important for us to be prepared in advance and a safety net of health insurance coverage for yourself and family gives us a protection against the medical expenses of the future. Hence, Arogya Sanjeevani could be a good choice for the first-time health insurance buyers in India especially with low income in tier 3 or 4 cities who have no insurance coverage as the policy is designed to provide access to quality health care while safeguarding their financial well-being.”
Mayank Bathwal, CEO, Aditya Birla Sun Life Health Insurance believes that this product is meant for customers who want a simple product without any confusion of what’s covered and what’s not. In addition, Aarogya Sanjeevani Policy is comparatively cheaper than a regular health insurance product. However, agents should be mindful of clauses like copayment and sublimit before recommending it.
Kapil Mehta of SecureNow Insurance Broker said the policy has basic features, which are the minimum standard that any health insurance must have. “Policyholders falling under low to medium income group and want coverage up to Rs.5 lakh can consider this policy.”
He further said that this product would help intermediaries compare underwriting practices of insurance companies. “So for the same product, if somebody is charging more price, it's a good indicator of how efficient the insurer is.”
Seconding his views, Hari Radhakrishnan of Amicus Insurance Brokers said that the policy is suitable for individuals who do not want to spend much on health insurance policies.
