The country’s first standard health cover policy, Arogya Sanjeevani, is gaining ground and is expected to see traction in sales going forward.
Following a mandate from the Insurance Regulatory and Development Authority of India (IRDAI), general and standalone health insurers rolled out the policy from April 1.
“The product has been well received and is picking up. The insurers must have sold over 25,000 policies since the launch,’’ Subhash C Kunthia, Chairman, IRDAI, told BusinessLine.
“As people will know more about the product going forward, the sales too are expected to increase further,’’ the IRDAI Chief said.
In view of its affordability and lack of complexity, the product will help people from lower and middle income group, and all insurers have been directed to have the same coverage and exclusions, Kunthia added.
The plan offers health cover of ₹1-5 lakh and gives basic health insurance cover to all subscribers.
As the “unlock” process is almost complete across the country, insurers are also expecting the sales to go up. Many have already launched promotional campaigns.
“Arogya Sanjeevani is a very bright product in terms of wider coverage it offers,’’ Gurdeep Singh Batra, Head-Retail Underwriting, Bajaj Allianz General Insurance, said.
“However, the problem is the product got launched during the lockdown when the whole industry was operating at a low key,’’ he added.
The product is basically focussed on people who are new to insurance and therefore do not have a base plan. It will also cater to those in under-penetrated tier II and tier III cities/towns.
A letter from the Editor
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!