In cognizance of escalating medical costs amid covid-19 pandemic, the Insurance Regulatory and Development Authority of India (IRDAI) has directed all general and health insurance companies to remove the capping of Rs 5 Lakhs from Arogya Sanjeevani Standard Health Insurance Plan.
The insurers are called to bring the change in the policy terms with immediate effect.
The standard insurance plan “Arogya Sanjeevani” was launched to offer a comprehensive affordable family floater cover for Rs 1 lakh to Rs 5 Lakh to middle class. However as the plan was launched before COVID 19 breakout a limit was set. Now the IRDAI has allowed insurers to offer a minimum of Rs 50,000 cover with no upper limit so as to expand the maximum reach of the product. The policy can be availed of in the multiples of Rs 50,000.
It is one of the lowest cost standardised health insurance plans available currently. Since pandemic breakout, the cost of hospitalisation has been constantly rising and a family may need the cover of Rs 10 Lakh or more in case of contact with the Virus.
The only downside is, that the policy comes with a capping of 5% co-pay and 2% sub-limit on room rent. It covers room, boarding and nursing expenses up to 2% of the sum insured, and a maximum of Rs 5,000 a day. Yet, in all, it is one of the most cost effective first time plans for households.
Written By Reshma RawatAssistant Content ManagerCredit Cards, Credit Score, Personal Loan, Home Loan, etc.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
