In Jan 2020, when the insurance regulator directed all general and health insurers to offer a standard health insurance policy, the coverage under Arogya Sanjeevani ranged between Rs. 1 lakh and Rs. 5 lakh (in multiples of Rs. 50,000).
Later in July 2020, IRDA allowed insurers to issue Arogya Sanjeevani policies for less than Rs. 1 lakh with no upper cap. However, as per a media report, most of these policies offer coverage up to Rs. 5 lakh.
As per the latest circular, insurers must mandatorily offer coverage between Rs. 50,000 and Rs. 10 lakh, subject to their underwriting policy. The insured amount must be in the multiples of Rs. 50,000. The new band will come to effect from 1 May 2021, or earlier. This move is likely to bring many more people under the umbrella of insurance.
According to an IRDAI circular, insurers must refer to ‘Guidelines on Filing of Minor Modifications in the approved Individual Insurance Products offered by General and Stand Alone Health Insurers on Certification Basis’ and file the premium rates for the revised sum insured. The circular also clarified that the unique identification number (UIN) will be retained for the modified product.
Arogya Sanjeevani Policy offers individual as well as family floater plans. The tenure of the policy is one year and is subject to lifelong renewability.