The Insurance Regulatory and Development Authority of India (IRDAI) mandated all insurance companies to offer the Aarogya Sanjeevani Policy starting April 2020. This standard health insurance policy is meant for individuals and families and provides coverage of up to Rs. 5 lakhs for basic hospitalisation-related expenses. To make this insurance product simpler to understand, the regulator has restricted all insurers from imposing any deductibles or providing any riders and variants along with this policy.

So, who should consider buying the Arogya Sanjeevani policy? What are its benefits? Here, we will explain the basics of this policy and help insurance seekers make a decision if they should invest in it.

What is Arogya Sanjeevani Policy?

Arogya Sanjeevani Policy is a basic health insurance policy that provides coverage for medical or hospitalization expenses of up to Rs. 5 lakhs. As per IRDA guidelines, all insurance providers are required to come up with a basic & standard health insurance policy to cover both individuals & families.

Arogya Sanjeevani Health Policy is universal for all general & health insurance companies in India. It offers several benefits and covers pre & post hospitalisation expenses including bed charges, nursing fees, ICU & doctor consultation fees, etc.

Additional Reading: Arogya Sanjeevani Health Insurance

Arogya Sanjeevani Health Insurance is designed to protect individuals & their family from financial strain during medical emergencies. There are two basic types of plans under the Arogya Sanjeevani Insurance Policy:

  • Individual Plan: Only 1 policyholder can be added as a beneficiary under this plan.
  • Family Floater Plan: Under this plan, all family members can avail the benefits of the Arogya Sanjeevani Policy. The policyholder can therefore include dependents, like spouse, children, parents & parents-in-law within a single policy.

Benefits of the Arogya Sanjeevani Policy

Arogya Sanjeevani Policy was launched with the primary objective to simplify health insurance in India by providing a basic & standard medical insurance cover similar to all of the top health insurance companies. It aims to offer basic indemnity insurance benefits to policyholders across various income groups in India. Here are some of the key benefits to be availed from this policy cover:

  • Avoids Confusion – This policy helps in eliminating the scope of any form of confusion that may arise among policyholders. This is because the same level of coverage and various terms & conditions are offered by all insurance companies.
  • Option of Lower Co-payment – The policy has an option that allows policyholders to make a lower co-payment of up to 5% of the net claim amount. Hence, an applicant can pay only 5% of the total claim amount at the time of settlement.
  • Cumulative Bonus – Like any other medical insurance policy, the Arogya Sanjeevani Health Plan also offers a cumulative bonus of 5% on the total sum insured amount for every claim-free year.
  • Boon for First-Time Buyers – This policy is an ideal choice for a first-time health insurance buyer since he/she will be able to get access to a wide range of coverage at least cost without going through the hassle of understanding the benefits and drawbacks of different health plans.
  • Lifetime Renewability – This policy has lifetime renewability that allows policyholders to renew their policies till the time they are alive.

Who Should Opt for Arogya Sanjeevani?

The Arogya Sanjeevani policy can be suitable for first-time health insurance buyers since the product offers a wide coverage at a reasonable premium and also the terms and conditions of the policy are standard (common across policy wordings) irrespective of the insurer. This makes it easier for policyholders to understand the policy.

Although there is a rising awareness about the need for health insurance plans, there is still a lack of penetration of insurance policies across India. Due to the vast variety, complexities of health insurance policies and their unaffordability, an average household withholds from buying health insurance. This issue is being addressed by Arogya Sanjeevani by offering simplicity and standardisation through its construct combined with a reasonable premium structure.

Individuals who are working and do not have any dependents and are unmarried can consider investing in this policy. The Arogya Sanjeevani policy is ideal for younger people who want a comprehensive cover for themselves. The premium is much lower as compared to other policies and it offers a wider coverage including cover for day procedures.


Arogya Sanjeevani might be an answer to all those who were contemplating an investment in health insurance but were unclear about the various terms and conditions of different insurance plans. Those who invest in this plan are sure to benefit from it in the future. It comes at reasonable premium rates and has wider coverage that benefits policyholders. 


  1. Who are not eligible in a family for Arogya Sanjeevani?

Independent children above 18 years of age cannot be covered in a family policy. They will have to buy an individual plan.

  1. Who is offering the Arogya Sanjeevani policy?

Arogya Sanjeevani Policy is a standard health insurance plan that was introduced by the IRDAI on 1st April 2020. It is now being offered by top health insurance companies in India. As part of this policy, the insured person can avail of policy cover ranging from Rs 1 lakh to Rs 5 lakhs.

  1. Should I buy the Arogya Sanjeevani policy?

Those who are looking for an affordable life insurance plan with wide coverage must consider investing in Arogya Sanjeevani. It provides limited coverage of Rs. 1-5 lakhs per year at very affordable premiums. 

  1. What is Arogya Sanjeevani policy?

Arogya Sanjeevani is a health insurance policy that covers hospital room rent, boarding expenses, doctor fees, and numerous other expenses related to hospitalization. It covers both Pre and Post hospitalization expenses for up to 30 and 60 days respectively.

  1. Is Arogya Sanjeevani policy cashless?

Yes. Arogya Sanjeevani policy allows policyholders to avail cashless treatment.