Everything about Arogya Sanjeevani Policy with its benefits and disadvantages


21 Jul 2023

Read about Arogya Sanjeevani Policy with its benefits and disadvantages. For more information, check out the health insurance policy from Kotak General Insurance.

Arogya Sanjeevani is a standard health insurance policy launched by the IRDAI on 1 April 2020.

It is a health plan designed to provide basic health insurance coverage at an affordable price. Read this post to learn more about its pros and cons.

All general insurance providers in India offer the Arogya Sanjeevani policy, which can provide basic health insurance coverage of ₹50, 000 to ₹10 lakhs.

It’s a comprehensive health plan that covers pre and post-hospitalisation costs, AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homeopathy) treatments, COVID-19 treatments, and other medical costs.

You can purchase Arogya Sanjeevani health insurance for only yourself or your entire family, including your dependent children, parents, and parents-in-law.

Advantages of Arogya Sanjeevani

• An uncomplicated health insurance plan

The Arogya Sanjeevani policy provides uniform coverage with standard features. Besides, it has no optional add-ons or other complicated terminologies, making its terms and conditions easy to understand for new or first-time policy buyers.

• Reduces financial burden

A sudden medical emergency or an onset of illness can severely put your finances under pressure. However, Arogya Sanjeevani ensures you can get quality treatment without worrying too much about finances.

Arogya Sanjeevani policy buyers can also avail of cashless claim settlements provided they receive treatment at their insurer’s network hospital.

• An affordable healthcare plan

Arogya Sanjeevani provides a budget-friendly health insurance option, with albeit limited coverage but at reasonable premium rates. Therefore, it makes quality healthcare accessible to numerous people.

• Cumulative bonus

You can earn a cumulative bonus on your Arogya Sanjeevani policy if you don’t file any claim during the policy term. The bonus will be in the form of a 5% discount on your policy premium for every claim-free year up to a maximum of 50%.

• Flexible premium payment mode

You can opt for various premium payment modes, such as monthly or annual payments, depending on your personal finance plan. Moreover, the plan provides a grace period of 30 days for the yearly payment mode and 15 days for other modes of payment.

Please note that yearly premium payments can be cheaper for you. Other instalment facilities can come with loading charges as below.

– Monthly- 4%

– Quarterly- 3%

– Semi-Annually- 2%

• Lifetime renewability

The entry age to purchase the policy is 18-65 years. However, the Arogya Sanjeevani health insurance comes with lifetime renewability even after 65 years of age if you’ve purchased the policy before attaining the age of 65 years.

• Online purchase

You can purchase the Arogya Sanjeevani policy online and get a 2.5% discount on online policy issuance.

Limitations of Arogya Sanjeevani

• Lack of customization

Arogya Sanjeevani is a standard health insurance plan standardised by the IRDAI. So, it doesn’t offer the option to include more add-ons to the policyholders for added protection.

• Restricted sum insured

You can’t purchase an Arogya Sanjeevani Plan above the maximum sum insured limit of ₹10 lakhs. As healthcare expenses continue to rise, many would find the maximum sum insured limit inadequate, especially those living in big cities.

The Arogya Sanjeevani plan can be a great option for people who can find typical health insurance plans costly and confusing. If you haven't bought a health plan yet, consider buying Arogya Sanjeevani as your first line of financial defence in a healthcare emergency.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.