In a bid to extend health insurance cover to a wider population, insurance regulatory body Insurance Regulatory and Development Authority of India (Irdai) has increased the maximum cover under the standard health insurance plan, Arogya Sanjeevani Policy to Rs. 10 lakh from Rs 5 lakh earlier.
Now, the IRDAI has made it compulsory for insurers to extend a sum insured value of between Rs. 50,000 to Rs. 10 lakh under Arogya Sanjeevani policy in comparison to the earlier stipulated range of Rs. 1 lakh to Rs. 5 lakh. "In order to enhance the coverage available under Arogya Sanjeevani Policy, in partial modification of the extant guidelines, insurers shall mandatorily offer the sum insured between Rs 50,000 to Rs 10 lakh under the standard product from May 1, 2021, or earlier," IRDAI said in a circular.
Arogya Sanjeevani introduced in March 2020 is a standardized health cover.
Also, only recently the IRDAI discouraged insurers from making any substantial changes in health insurance plan that could result premium hike. Nonetheless, it allowed minor changes together with an offer of an optional cover in which the premium is reflected in a distinct manner.
IRDAI on Friday asked insurers to take part in the nationwide Covid 19 vaccination drive and make policyholders aware.
Amid the pandemic, most insurers hiked health insurance premiums. Further several insurers provided for the directives that nudged them to offer a broader cover in comparison to the previous on health insurance plans. And at that time the regulator pointed out that the wider coverage as per the regulations prescribed would result in a premium hike by only 5 percent.