Home / Money / Personal Finance /  Irdai removes 5 lakh cap on sum insured for Arogya Sanjeevani policies

Taking into account the increasing cost of healthcare in the country amid the covid-19 pandemic, the Insurance Regulatory and Development Authority of India (Irdai) has allowed all general and health insurance companies to increase the sum insured on the standard health insurance product beyond 5 lakh.

Insurance companies are allowed to make this change with immediate effect.

The standard product called Arogya Sanjeevani, which all insurers are mandated to offer had a cap of 5 lakh on the sum insured and the minimum cover one could opt for was of 1 lakh. The regulator has now allowed insurers to offer sum insured as low as 50,000 with no upper limit. The sum insured has to be in multiples of 50,000.

Arogya Sanjeevani is one of the most affordable health insurance products available today, but the policy comes with a 5% co-pay and 2% sub-limit on room rent. A 5% co-payment clause means that you will pay 5% of the claim amount and the insurer will pay the rest. The policy covers room, boarding and nursing expenses but only up to 2% of the sum insured, subject to a maximum of 5,000 a day. You can find out more details here.

"With the earlier cap of 5 lakh, the product was unable to meet the needs of the policyholders. Given the situation today, it is important to go for a higher cover to deal with expensive treatments and Irdai understands the same. Policyholders will now be able to opt for a higher sum insured at relatively affordable rates," said Naval Goel, chief executive and founder, PolicyX, an online insurance aggregator.

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