health insurance: You may be able to avail standard indemnity health insurance policy sooner than you think


Those confused with the variety of health insurance plans on offer, a standard health indemnity health insurance plan will be available sooner than you think.

The Insurance Regulatory and Development Authority of India (IRDAI), on January 24, issued a circular allowing insurers to sell the standardised health insurance policy (Arogya Sanjeevani Policy) prior to April 1, 2020. This is a health insurance product that will take care of the basic requirements of policyholders.

Earlier this month, through a circular on January 2, the regulator had allowed insurers to offer the policy from April 1, 2020, and said the policy should be named as Arogya Sanjeevani Policy, succeeded by the name of the insurance company. No other name will be allowed in any of the documents, IRDAI mandated.

The January 24 IRDAI circular said, “In partial modification of the above-referred clause of the guidelines, it is clarified that the insurers can start offering “Arogya Sanjeevani Policy” before April 1, 2020, and should ensure that this product is definitely offered on or before April 1, 2020. However, if an insurer is currently not offering indemnity-based health insurance products at all, the above stipulation will not apply to those. As and when those insurers start offering indemnity-based health insurance products, they will have to also offer the standard product ‘Arogya Sanjeevani Policy’.”

Here are a few things you should know about the standard health insurance policy.

The policyholders can buy this policy for a term of one year wherein the policy is subject to lifelong renewability.

Minimum entry age of the policyholder should be 18 years and the maximum entry age should be 65 years. However, a proposer, who is older can also obtain a policy for the family without covering one’s self.

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.

The policyholder can buy the standard indemnity policy with a minimum sum insured limit of Rs 1 lakh and the maximum sum insured limit of Rs 5 lakh (in multiples of Rs 50,000). Also, in the case of an individual health policy, the sum insured will apply to each family member whereas, in the case of the floater health insurance plan, the sum insured will apply to the entire family.


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