IRDAI has modified the guidelines of Arogya Sanjeevani Policy to keep the premium low for the policyholders.
Arogya Sanjeevani Policy, the standard health insurance policy, is set to be cheaper for policyholders. IRDAI has allowed insurers to issue the policy contract of Arogya Sanjeevani Policy in the electronic or digital format to the policyholders. This move by The Insurance Regulatory and Development Authority of India (IRDAI) will help insurance companies to keep the cost of servicing such policies low so as to pass on the benefit to the policyholders.
The IRDAI has recently modified the guidelines on Standard Individual Health Insurance Product called Arogya Sanjeevani Policy as far the issuance of the policy certificate is concerned. As per the regulations, providing policy documents in physical form is mandatory when policies are issued in electronic form directly to the policyholders.
However, since features and even the terms and conditions of Arogya Sanjeevani Policy are common across all the insurers, IRDAI has allowed insurers to issue the policy contract of Arogya Sanjeevani Policy in electronic or digital format, thus saving on costs. The objective is to reduce the operating or servicing costs and to pass on this benefit of reduced operational cost to the policyholders by way of affordable premiums.
The insurers have to ensure that the digital form of the policy contract is forwarded through email or a link is provided in the certificate of insurance. However, where policyholder specifically seeks the physical form of the policy contract, the same shall be provided by the insurer.
IRDAI has also mandated that every insurer offering Arogya Sanjevani Policy should provide a certificate of insurance to the policyholder indicating the availability of health insurance coverage. The certificate shall have a reference to access detailed terms and conditions of the policy contract.
In order to make buying of health insurance policies simpler, in January 2020, the IRDAI had made it mandatory for all standalone health insurance companies and general insurance companies to offer a standard health product to the policyholders. Such a standard health policy is to be called Arogya Sanjeevani Policy. Earlier, the insurers had to be ready with such a product from April 1, 2020 but later on, the regulator relaxed the time line and allowed any insurer to launch the product even before April 1, 2020. Till date, no insurer has launched such their Arogya Sanjeevani Policy for the policyholders.
The maximum sum insured in Arogya Sanjeevani Policy is Rs 5 lakh and therefore, one may have to buy additional insurance as in these times when medical inflation is rising, this limit could be too low.
As the features of Arogya Sanjeevani Policy are going to largely similar, buyers will stand to benefit by avoiding to make a comparison of health insurance plans. The choice will largely depend on the premium and the level of comfort that the buyer has regarding the insurance company.