What the Standard Health Insurance Product Offers

In India, the IRDAI (Insurance Regulator and Development Authority of India) regulates and governs the insurance industry. Recently, the regulatory body, on January 2nd, 2020, issued a mandate which stated that all insurance companies in India must offer a standardised product that will meet the basic requirements of the policyholders.

The IRDAI has named the policy as ‘Arogya Sanjeevani Policy,’ which will be succeeded by the insurer’s name. The insurance companies cannot give the policy any other name, and it will be mentioned in all the policy-related documents. Several insurance companies in India believe that the introduction of the standard policy is a welcome move to increase insurance penetration in the rural parts of India. A significant feature of this policy is that it will allow the buyers to pay the premium in instalment, which will attract more buyers from the low and middle-income group.

Here are a few critical that the standard health insurance offers to all policyholders:

· The minimum age limit to buy a health insurance policy, as determined by the IRDAI is 18 years, and the maximum entry age is 65 years. However, you must know that there is no cap on the exit age, which means the policy has lifelong renewability. You can buy this insurance for yourself, and other family members included spouse (legally wedded), dependent children (aged between three months and 25 years), and parents.

· If you opt for a yearly premium payment plan, you get a fixed 30-day grace period to pay the premium, before the policy gets lapsed. For other modes of payment, you get a graced period of 15 days.

· Irrespective of the type of insurance policy you buy, be it an individual policy or a family floater policy, you get a free look-in period of 15 days from the date of receipt of the policy. Within the look-in period, you can review the terms and conditions, and if you feel the policy does not suit your requirement, you can cancel the policy without incurring any penalty.

· The sum insured (not including the cumulative bonus), will increase by 5% every year for every claim-free year. However, you can avail the benefit of the increased sum insured only if you renew the policy without a break.

· The minimum sum insured of a standard health insurance policy must be Rs. 1 lakh, and the maximum limit is Rs. 5 lakhs. If you have purchased an individual health policy, you are entitled to get the full sum insured benefit, but if you have a family floater, the amount will apply to the entire family.

· The IRDAI has mandated all the insurance company to include pre-hospitalisation and post-hospitalisation expenses in the health insurance policy. You can get compensation for expenses incurred up to 30 days before hospitalisation. You are also entitled to get a 60-day post-hospitalisation cover from the day of discharge from the hospital.

· Earlier, most insurance companies did not offer protection for alternative treatment methods like Ayurveda, homoeopathy or Unani. But, with the introduction of the standardised health insurance policy, the insurers are instructed to include expenses in alternative treatments under their cover.

· In India, many people suffer from cataract and other eye-related medical conditions. Earlier, the expenditures for eyecare was excluded from the health insurance policy. But, now, the IRDAI has mandated all insurers to cover the same up to a maximum limit of 25% of the sum insured or Rs. 40,000, whichever is lower. Also, all dental treatment and plastic surgery necessitated due to accident or injury are covered under the standard policy.

With so many amazing benefits of a standard health insurance policy, you must have a health plan in your insurance portfolio.