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Health Insurance is one of the most reliable ways to deal with the uncertainty of life. Numerous diseases and disorders affecting people of all ages as well as the ever-rising cost of healthcare services, both of them have increased the necessity of having health insurance. Every year, thousands of people purchase health insurance that covers the expenditure at the time of medical emergency.

Understanding the nature of health insurance coverage is important to avoid any complications during hospitalisation. Health insurance plans cover the cost incurred for the medical treatment of an insured person, which includes the following factors:

  1. Service fees of specialist, consultants, physicians, surgeon and anaesthetist
  2. Charges of the hospital room
  3. Nursing Fees
  4. Charges for various healthcare supplies like blood, oxygen, X-ray, surgical appliances, etc.
  5. Medicine and drugs

In India, the number of people buying health insurance is increasing. Thus, recently the Insurance Regulatory and Development Authority (IRDA) has prepared the guidelines for health insurance companies offering a standard health plan. These guidelines will make all general and health insurance providing companies offer a standard health cover to every person willing to purchase health insurance.

After the implementation of guidelines, the consumers will recognise the product under the name of Standard Mediclaim Policy. As all insurers would be offering standard health insurance coverage to everyone, the IRDA guidelines are expected to simplify the decision-making process of potential buyers.

Important things about Standard Health Cover:

  • It is registered under the provision of section 34 (1) (a) of Insurance Act, 1938
  • It will provide a general cover, which will be constant within the insurance market. E.g. Hospitalisation payments.
  • No additional or optional covers will be available.
  • Basic sum assured will range from Rs. 50,000 to Rs. 10,00,000.
  • The premium for the product will be decided by a particular insurance providing organisation.
  • It will include standard exclusions.
  • With standard limits, it will cover the medical expenses for various medicinal systems like Ayurveda, Homeopathy, Unani and Sidha.
  • It has inclusion for periodic consultation for at least once a year.
  • It will provide an incentive to the individual following a healthy lifestyle.
  • After each claim-free policy period, the sum assured will increase by 5%.
  • It will come with standard co-pay meaning the insured have to pay a specific amount too.

How the standard health insurance plan will be beneficial for Indians?

Along with traditional purchase with the insurance agent, the number of people buying health insurance online has significantly increased in India. Currently, there are about 30 insurance companies offering various health insurance plans. The guidelines for these plans are somewhat similar as well as there was no standardization. Thus, many people find it difficult to compare with each other as well as a time-consuming.

Once the IRDA guidelines will come to effect, the Standard Health Insurance Cover will streamline the process.