The Life Insurance Corporation of India (LIC) on Monday, 19th July, 2021, introduced a new health insurance plan, namely the ‘Arogya Rakshak’ plan, which is a non-linked, non-participating, regular premium, individual health insurance plan.
According to the LIC, “The Arogya Rakshak policy provides fixed benefit health insurance cover against certain specified health risks and provides timely support in the case of medical emergencies and helps the insured and his family to remain financially independent in difficult times.”
This plan provides fixed benefit health insurance cover against certain specified risks and provides timely support in case of medical emergencies and helps the insured and his family to remain financially independent in difficult times.
An individual can insure themself (as Principal Insured), their spouse, all children and parents under one policy. The plan is available for Principal Insured (PI), spouse, parents aged 18 years to 65 years and children of age 91 days to 20 years. The cover period available for PI, spouse and parents up to age 80 years and for children is up to 25 years.
Furthermore, there shall be no general waiting period in case ‘Hospitalisation’ or ‘Surgery’ is due to accidental bodily injury. There shall be a general waiting period during which no benefits shall be payable in the event of Hospitalisation or Surgery if the said Hospitalisation or surgery occurred due to Sickness. The waiting period shall be 90 days from the Date of Cover general Commencement in respect of each Insured.
If the policy is revived after discontinuance of the Cover then the following shall apply in respect of each Insured:
- If the request for revival is received by the Corporation within 90 days from the due date of the first unpaid premium, then there shall be a general waiting period of 45 days from the Date of Revival in respect of each Insured.
- If the request for revival is received by the Corporation beyond 90 days from the due date of the first unpaid premium, then there shall be a general waiting period of 90 days from the Date of Revival in respect of each insured.
A few benefits of the aforementioned scheme are:
- Flexible benefit limit to choose from
- Flexible premium payment options
- Valuable financial protection is available in the case of hospitalisation, surgery, etc.
- Lump-sum benefit irrespective of actual medical costs
- Increasing health cover by way of Auto Step-up Benefit and No Claim Benefit.
- Suppose more than one member are covered under a policy. In that case, a premium waiver for other insureds is available in case of unfortunate death of the principal insured, i.e. the policyholder at the inception of the policy.
- Premium waiver benefit for one year in the event of any insured undergoing surgery falling under Category I or Category II for certain major surgical benefits.
- Ambulance facility, health check-up benefit is available
Besides, optional riders such as new term assurance rider and accident benefit rider are also available under the policy. One can choose the amount of Initial Daily Benefit (i.e. the daily Hospital Cash Benefit applicable in the first year of the policy) as per one’s need from out of the following choices:
This is the amount that one will be paid in the event of hospitalisation in the first year on a per day basis. The Major Surgical Benefit that one will be covered for will be 100 times the Initial Daily Benefit one has chosen. Thus, the initial Major Surgical Benefit Sum Assured will be Rs 1 lakh, 2 lakh, 3 lakh, 4 lakh respectively.
Other benefits such as Day Care Procedure Benefit, Other Surgical Benefit and Premium waiver Benefit (PWB) shall also be payable depending upon the daily Hospital Cash Benefit chosen.
Premium payable: The amount of premium payable will depend on one’s age, gender, the Health cover option one has chosen, whether one is a Principal Insured or other insured life and the mode of payment.
