In a circular dated 24 January, the Insurance Regulatory and Development Authority of India (IRDAI) said that insurers can start offering the Standard Health Insurance Product anytime before the deadline of 1 April.
Earlier, to curb confusion on multiple health insurance policies available in the market, the regulator had mandated all general and health insurers to offer a standard individual health insurance product with a maximum sum insured of up to Rs 5 lakh.
The product, which will be named 'Arogya Sanjeevani' followed by the insurer's name had to be made available from 1 April 2020.
In the Guidelines on Standard Individual Health Insurance Product, IRDAI stated that insurers can start offering them earlier than the set deadline.
However, for insurers that are currently not offering indemnity based health insurance products, the above stipulation about an early launch will not apply.
The Arogya Sanjeevani Policy is expected to take care of basic health needs, carry similar policy wordings and enable seamless portability among the insurers. It is expected to make the purchase of health insurance policies simpler for individuals.
The Standard Health Insurance Policy will be available as individual as well as Family Floater covers and is an indemnity policy (works on reimbursement basis).