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Aarogya Sanjeevani Policy: Is standard health insurance product good for first-time buyers?

Rajeev Kumar
Aarogya Sanjeevani Policy details and benefits

Aarogya Sanjeevani Standard Health Insurance Policy Details: From April 1 this year, all general and standard health insurers will have to roll out a standard health insurance policy, according to a recent guidelines issued by the Insurance Regulatory Development Authority of India (IRDAI). Named ‘Aarogya Sanjeevani Policy’, the standard health insurance policy will be a "standardized product" covering basic hospitalization needs of customers.

The minimum sum insured under the policy will be Rs 1 lakh while the maximum sum insured will be Rs 5 lakh with a co-pay of 5 per cent and room rent limit up to 2 per cent.

Good for first-time buyers?

Will the standard health policy be a good option for first-time health insurance buyers? Yes, said Amit Chhabra, Head- Health Insurance,

Chhabra told FE Online, "First-time buyers can look into this product as the premium amount is low which is affordable to them. These are indemnity based plans having all the basic features and benefits. The sum assured can be increased later in life as per the need."

However, before opting for the policy, first-time buyers should be aware of the limitations like co-pay, room rent capping etc, said Chhabra.

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Standard Health Policy benefits

Chhabra pointed out several benefits subscribers will get from the standard health policy:

1. Basic hospitalization expenses

2. Ayush Treatment

3. Pre and Post hospitalization expenses

4. Cumulative Bonus can be increased to 5%

5. Wellness Incentives

Key points to consider before buying

According to Chhabra, some of the important points first-time buyers should look for before buying the standard health insurance product are:

1. Restoration Benefit

2. Sub Limits

3. Cashless Hospitalization Services

4. Maternity Cover

5. Portability

Last week, IRDAI allowed selling of Aarogya Sanjeevani Policy’ through Point of Sales (PoS) persons.

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Aarogya Sanjeevani Policy features

No add-ons or optional covers will be allowed along with the standard product.

The hospitalisation expenses covered by the standard policy will include "room, boarding, nursing expenses as provided by the Hospital/Nursing Home up to 2% of the Sum insured subject to maximum Rs 5000/- per day."

It will also include:

– Anaesthesia, blood, oxygen, operation theatre charges, surgical appliances, medicines and drugs, costs towards diagnostics, diagnostic imaging modalities, and such similar expenses.

– Intensive Care Unit (ICU) / Intensive Cardiac Care Unit (ICCU) expenses up to 5% of sum insured subject to maximum Rs 10,000 per day.

The expenses on hospitalisation for a minimum period of 24 hours will be admissible. However, this time limit will not apply if the treatment does not required as specified in terms and conditions of the policy contract.

Cumulative Bonus: "Sum insured (excluding CB) shall be increased by 5% in respect of each claim free policy year, provided the policy is renewed without a break subject to maximum of 50% of the sum insured. If a claim is made in any particular year, the cumulative bonus accrued may be reduced at the same rate at which it has accrued," IRDAI had said.