Know What is Arogya Sanjeevani Policy?

The IRDAI has made it mandatory for health insurers to introduce a standard product that offers basic coverage.

Despite being in the market for years now, health insurance is still a novelty for most Indians who don’t have coverage (over 55 per cent). Of course, the biggest problem for most Indians is affordability since most people are unable to spare funds to pay the premiums on a health insurance policy. Another is the lack of knowledge and the confusion created by the plethora of products in the market.

To cut through the clutter, the Insurance Regulatory Authority of India (IRDAI) has made it mandatory for health insurance companies to offer a standard, uniform product, which has been termed Arogya Sanjeevani Policy. For a first-time buyer of health insurance, this could be a good choice since the product will be the same, regardless of the company offering it. The product is expected to be introduced on 1 April 2020.

Features of Arogya Sanjeevani Policy:

• The insurance policy will offer coverage of between Rs. 1 lakh and Rs. 5 lakh and will be for a period of one year. It will be available in multiples of Rs. 50,000.


• It will be available as individual or family floater plans.


• Anyone over the age of 18 can purchase an Arogya Sanjeevani Policy. The maximum age at which you can purchase this policy is 65 years. 


• If you already have a policy, you can keep extending it, even over the age of 65. So essentially it’s a lifetime policy.


• You can take out a policy for yourself, your spouse, dependent children from three months to 25 years, parents and parents-in-law. The policy cannot include children who are above 18 and are financially independent. 


• Premiums on the policy are the same for all companies and all regions of the country. They can be paid every month, quarter, six months or year.


• The policy will cover plastic surgery and dental treatment due to disease or injury. It will also pay for cataract surgery subject to a limit of 25 per cent of the sum assured or Rs. 40,000, whichever is lower.


• In the case of hospitalization, room rent has been capped at 2 per cent of sum assured or Rs. 5,000, whichever is lower.


• The sum insured will be increased by five per cent for every claim-free year, up to 50 per cent of the sum assured. For this cumulative benefit, the policy has to be renewed every year without a break.


• The insurance policy can be easily ported from one insurance company to another since the product is a standard one.

Arogya Sanjeevani is meant for those who take out a health insurance policy for the first time. If you are educated and fairly well-off, you might want your health insurance to cover more than Rs. 5 lakh. Considering the spiralling cost of health insurance, this sum is not likely to go very far if you do fall ill. But for those people with low incomes and living in smaller towns and villages, it could be a good option because the product is simple and easy to understand. Premiums too will be lower for this kind of product. For many Indians, this kind of insurance cover is better than having no protection at all whatsoever. The last thing they want to do is to be at the mercies of the virtually non-existent public health system.