Soon, buying health insurance will get a lot simpler as the insurance regulatory authority IRDAI has directed both general as well as health insurers to offer SHIP or Standard Health Insurance Product. With this customer's basic health need will be catered to plus the policies will have similar terms and conditions and further will allow easy portability among different players in the industry.
All of the SHIP product of different insurers will be labelled as Arogya Sanjeevani Policy, succeeded by company's name. Say Appolo Munich insurance SHIP will be called as Arogya Sanjeevani Policy Apollo Munich. Already the guidelines have been provided by the regulator and now beginning the new financial year i.e. April 1, 2020, insurance companies have to come up with their Arogya Sanjeevani Policy.
Salient features to be incorporated in Arogya Sanjeevani Policy:
1. Minimum sum insured will be Rs. 1 lakh and maximum will be Rs. 5 lakh.
2. Minimum and maximum entry age will be 18 years and 65 years. In the case of family floater plans, age of children should be between 3 months and 25 years.
3. Plan shall be offered on both individual lives as well as for family as in family floater plans.
4. Similar to existing health insurance policies, Arogya Sanjeevani Policy will also have to be renewed annually with a grace period of 30 days.
5. It will work on a reimbursement basis i.e. based on the hospital bill, payment will be reimbursed by the insurance company up to the sum insured value.
6. Some of the basic covers will be included that shall be mandatory and these will remain the same across the industry. Premium can however vary across insurers. These mandatory covers include pre-post hospitalization, hospitalization expenses, cumulative bonus and Ayush treatment.
7. There shall be however no optional or add-ons available with these newly designed policies
8. There shall be a copayment of 5% i.e. insured will need to mandatorily pay off 5% of the bill. Also there will be no deductible.