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.
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.