Arogya Sanjeevani health insurance: advantages, limits to know before buying


Arogya Sanjeevani offers coverage from a minimum of Rs. 50,000 to a maximum of Rs. 10 lakh.

The cost of hospitalization or medical inflation has always been considered a step ahead of the regular inflation of the economy. With the coronavirus hospitalization, the importance of the health insurance policy has gained ground in protecting one’s savings. Paying a fraction of the amount of coverage in a health insurance policy ensures that the hospital bill is reimbursed by the insurer.

So what could be the right health insurance to buy? There are several types of health insurance plans with different features and even additional features that might be confusing for buyers.

In order to help buyers, insurance regulator IRDAI had mandated insurers to launch a standard health insurance policy called Arogya Sanjeevani Policy which also covers hospital costs incurred due to Covid-19. Biresh Giri – EVP – Actuary, ACKO Insurance inform FE Online about the plan, its advantages, limitations and precautions to take before purchasing it.

What is Arogya Sanjeevani’s policy? Who is it suitable for?

Arogya Sanjeevani is also called standard health insurance. It is called so because it is a balanced policy with standardized features and benefits. The policy is particularly suitable for young first-time health insurance buyers or those looking for an affordable health insurance policy that covers the basics. Considering the standardization of terms and conditions among insurers, it is easy to understand the structure of the policy.

What are the important precautions before buying Arogya Sanjeevani Policy?

You can buy an individual alternative or even a floating family as part of this plan. However, for both, Arogya Sanjeevani offers coverage from a minimum of Rs. 50,000 to a maximum of Rs. 10 lakh. With the rising costs of healthcare, Rs. The insured sum of 10 lakhs split between spouse, children and parents might not be enough for a large family, especially if you live in the city.

Hospital costs are rising and are unlikely to drop anytime soon. Since you are purchasing a personal health insurance policy that can last a lifetime, Arogya Sanjeevani might not fit your lifestyle. While Rs. 10 lakh coverage seems sufficient now, is the question you need to answer enough in 10 to 20 years for you? There is of course the option of purchasing an add-on or porting your policy for a higher face amount, but this is something to think about for the buyer.

Are there any limitations in Arogya Sanjeevani that a buyer should be aware of?

To keep Arogya Sanjeevani affordable for everyone, there are certain limits to the benefits. The policy has a rent limit of 2% of the sum insured and a co-payment of 5% of the sum insured. Health insurance is meant to protect you from financial liabilities and to make good health care affordable for you.

Arogya Sanjeevani achieves this goal despite limitations. But if you prefer to pay the absolute minimum amount in the event of hospitalization, then Arogya Sanjeevani may not be for you. There are other plans that have no limit on room rent and that don’t have a co-payment clause that will significantly reduce your out-of-pocket expenses at the time of hospitalization.

Additionally, if you are looking for specific benefits or exemptions for events or illnesses like maternity, critical illness, and diabetes, Arogya Sanjeevani might not be for you. To achieve simplicity, Arogya Sanjeevani offers benefits that appeal to the masses. If you have a specific need, you can either include them using add-ons or go for a full policy that includes these benefits.

What if someone already has a company health insurance policy?

Many of us are covered by a corporate health insurance policy and don’t feel the need to purchase a retail health insurance policy. But a company health insurance policy doesn’t protect you in the following cases when you probably need it most:

  • After your retirement
  • If you lose your job or change to a company that does not provide adequate health insurance

Arogya Sanjeevani is a great policy to purchase in addition to your corporate health insurance. In this case, the limitation of the policy becomes an asset. Due to the limitation, the policy is affordable. Since Arogya Sanjeevani is renewable for life, you can continue to renew the policy to help you if and when you lose access to company health insurance. It also serves to supplement your company health insurance coverage which may not be sufficient for your family.

Do you know what it is? FE Knowledge Desk explains each of these and in more detail on Financial Express Explained. Also get live BSE / NSE stock quotes, latest mutual fund net asset value, top equity funds, top winners, top losers on Financial Express. Don’t forget to try our free income tax calculator.

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