In a circular issued on 7 July, the Insurance Regulatory and Development Authority of India (IRDAI) allowed insurance companies to offer a minimum sum insured of Rs 50,000 and maximum sum insured above Rs 5 lakh on Aarogya Sanjeevani Policy, subject to the underwriting policy of the insurers.
At present, the policy comes with a basic health cover of a minimum sum insured of Rs 1 lakh and a maximum sum insured of Rs 5 lakh.
Starting 1 April 2020, all insurance companies that offer health plans in India are mandated to offer the "Arogya Sanjeevani" policy, a standard health plan aimed at helping first-time health insurance buyers.
It was introduced to encourage more people in India to opt for health insurance products to cover basic hospitalisation charges without being confused by the endless number of health policies offered by insurance companies.
The policy is the same whether bought from a private or public sector insurer. It will include the name "Arogya Sanjeevani" followed by the name of the insurer.
IRDAI has banned insurers to impose deductibles or offer riders and variants with this policy.