A unique provision of ‘life-long renewability’ has been stipulated by IRDAI with no exit age for its new health insurance scheme, Arogya Sanjeevani Policy. Presently, insurance companies offer health insurance up to 75-80 or 90 years in select cases.
From April 1, 2020, general and health insurers should offer this product and don’t need any pre-approvals of the regulator, said IRDAI. The policy has no exit age and has provision for lifelong renewability, which refers if a person joins the scheme at the age of 65, he/she can use the policy till his death, provided renewals are done every year.
Dependents will be covered from the age of three months to 25 years subject to the definition of ‘Family’. In case the dependent is above 18 years of age and financially independent, he/she would be ineligible for coverage in the subsequent renewals.
The IRDAI has recently issued guidelines on mandatory standard individual health insurance, asking general and health insurers to offer product that can take care of basic health needs of customers with maximum sum insured of Rs 5 lakh and a minimum of Rs 1 lakh. Meanwhile, Irdai has provided greater clarity on the definitions of ‘portability’ and ‘migration’ under the proposed Arogya Sanjeevani Policy.
