Standard Insurance Policies Issued by IRDAI

9 min read

In India, there are so many Insurance companies having different types, features, criteria, terms, and conditions, etc. It’s so exhausting to choose a single policy among the many. But what if I said, now there is an easy and hassle-free option available where there will be standard policies across all the categories in all the companies. So when you will buy this policy there won’t be much difference so you can choose easily from any of the companies.  

Considering all those above things, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced a new standardized insurance plan across all the categories like life, health, and general insurance policy. These policies are having simple features and standard terms and conditions which will be available in all the companies.

So, let’s look into these policies which are as follows:

1. Saral Jeevan Bima (Term Policy):

What it is: This is the simple pure term plan which is a non-linked, non-participating which provides a death benefit in a lump sum to the nominee in the case the insured dies during the policy term. 

Who should buy: This policy is necessary for an individual whose family is dependent on him. It covers your Life Risk. This policy is suitable for lower-income groups. The premium varies from insurer to insurer. E.g. 30 years old female individual who wants to buy a policy of Rs. 25 lakh for her the premium amount is as follows: Edelweiss Tokio life – Rs. 6800, PNB MetLife – Rs.8830, Exide Life – Rs. 11,400 & SBI life 12479.

Pros: 
  • While buying pure term insurance lower-income & self-employed group always suffers the most due to qualification, stable income proofs, and various other restrictions but this plan doesn’t ask much so they can easily buy this plan.
  • People who weren’t eligible to buy regular term plans due to the lack of regular income proof and required educational qualification now can easily buy this plan as it’s also suitable for them. E.g., lower Income group, self-employed who earns between Rs. 2 lakh to 5 lakh.
Cons: 
  • If you will check the premium amount of the policies it’s much higher compared to the regular term plans as it carries the benefit of low policy coverage and no need for stable income proof. 
  • Let’s compare the premium amount for 30 years old woman having policy of Rs. 25 lakh for income tax slab above 5 lakh.
 Saral Jeevan BimaRegular Term Plan
Edelweiss Tokio LifeRs. 6800Rs. 3985
PNB MetLifeRs. 8830Rs. 4101
SBI LifeRs. 12479Not  available for 25lac
Aegon LifeRs. 11400Not  available for 25lac
  • Individuals with good qualification and having regular income proof should buy regular term plans rather than buying Saral Jeevan due to lower cost.

Features:

  • Policy Age Holder: 18 Years to 65 Years
  • Policy Coverage: 5 Years to 40 Years
  • Minimum Sum Assured: 5 Lakh
  • Maximum Sum Assured: 25 Lakh (Insurers have the option of offering Sum Assured beyond ₹ 25 lakh with all other terms and conditions remaining the same)
  • Policy waiting Period: 45 Days (During the waiting period, the claim amount on death of the life assured other than due to accident will be limited to an amount equal to 100% of all premiums received excluding taxes)
  • Optional Riders: Approved Accident benefit and Permanent Disability Benefits Riders can be attached.

For additional info: click here

2. Saral Pension (Annuity Policy):

What it is: This is the simple annuity product that offers a guaranteed return, no matter what. It is a traditional type of policy. After making a regular or lump-sum payment for a certain period, an individual receives a regular payout from a life insurer. This policy doesn’t have a maximum investment limit. IRDAI has given the band ranges from less than 2 lakh to more than 25 lakh, annuity rate would be according to the bands. Pricing is left to the insurers.

Who should buy: This plan targets people who want to purchase an annuity to ensure a regular flow of income after retirement. This plan helps an individual to receive a regular payout from a life insurer.

Two Annuity Options available: First, life annuity with 100% return of Purchase price and second, joint-life annuity and return of 100% purchase price on death of the last survivor.

Features:

  • Policy Age Holder: 40 Years to 80 Years
  • Policy Coverage: This is a whole life policy
  • Maximum Sum Assured: No limit
  • Minimum Annuity Amount: Yearly – 12K, Half-yearly – 6K, Quarterly-3K, Monthly – 1k
  • Maximum Annuity Amount: No limit
  • Survival Benefit – Annuity is payable during the survival of the annuitant.
  • Death Benefit: In the case of a single life annuity 100% of the price is offers to the nominee on the death of the annuitant.

For additional info: click here

3. Arogya Sanjeevani (Health Policy):     

What it is: This is a standard health insurance policy for individual and families which provides coverage of medical and hospitalization expenses. There are two types of the plan comes under this i.e Individual plan and family floater plan.

Who should buy: Everyone should buy health insurance. With the rising cost of medical expenses, everyone should have health insurance. The premium varies from insurer to insurer. For E.g. 30 years old female individual who wants to buy a policy of Rs. 5 lakh, the premium amount is as follows: Raheja QBE – Rs 3770, Care Health Insurance – Rs. 6013 & Max Bhupa Rs. 4722.

Features:

  • Policy Age Holder: Adults – 18 years to 65 Years, Children – 3 mn to 25 years.
  • Policy Coverage:  Individual and family floater
  • Minimum Sum Assured: 50,000
  • Maximum Sum Assured: 5 Lac
  • Pre-existing diseases Waiting Period: 48 Months
  • Specific diseases Waiting Period: 24/48 Months
  • Covers: Hospitalization medical expenses ( including Covid)

For additional info: click here

 4. Corona Kavach (Covid Indemnity Health Policy):

What it is: It’s a Covid specific product issued for the short term i.e less than a year. It covers home care treatment expenses and hospitalization expenses incurred by an individual for the treatment of a Covid in a government-authorized diagnosis center.

Who should buy: Everyone should buy this policy as we all know corona cases are rising so it will be better to buy this policy.

Features:

  • Policy Age Holder: Adults – 18 years to 65 Years
  • Policy Coverage:  Individual and family floater
  • Valid up to: 30th September 2021.
  • Minimum Sum Assured: 50,000
  • Maximum Sum Assured: 5 Lac
  • Policy Tenure: 3.6 months, 6.6 months, and 9.6 months
  • Waiting Period: 15 days from the date of policy comes into effect
  • Minimum Hospitalization Period required  – 24 hours
  • Expenses Covers: 15 days prior to the date of hospitalization or home care and 30 days from the date of discharge from the hospital or completion of home care treatment.

For additional info: click here

5Corona Rakshak (Benefit based Covid Health Policy):

What it is: This policy offers a lump sum benefit equal to 100% of the sum insured which will be payable on a positive diagnosis of Covid.

Who should buy: This policy offers to the people in case of having a loss of income due to Covid.

Features:

  • Policy Age Holder: 18 years to 65 Years
  • Policy Coverage:  Individual
  • Valid up to: 30th September 2021.
  • Minimum Sum Assured: 50,000
  • Maximum Sum Assured: 2.5 Lac
  • Policy Tenure: 3.5 months, 6.5 months, and 9.5 months.
  • Waiting Period: 15 days from the date of policy comes into effect
  • Minimum Hospitalization Period required –  72 hours

For additional info: click here

6. Makshak Rakshak (Health Policy):

What it is: It’s a standard vector-borne disease policy that will provide lump-sum benefits equal to 100% of the sum insured. Vector-based diseases include malaria, filarial, chikungunya, dengue fever, Japanese encephalitis, and zika virus. 

Who should buyIf one is having this health insurance policy then it will cover the hospitalization expenses for the diseases while this policy will compensate for the loss of income with its lump-sum payment. It will work as an additional cover.

Coverage:

  • Hospitalization Benefit: Lump sum benefit available equal to 100% of sum Insured (excluding the amount paid under- diagnosis cover)
  • Diagnosis cover: 2% of the sum insured shall be payable on positive diagnosis (through laboratory examination and confirmed by the medical practitioner).
Features:
  • Policy Age Holder: 18 years to 65 Years
  • Policy Coverage:  Individual & Floater.
  • Minimum Sum Assured: 10,000
  • Maximum Sum Assured: 2 Lac
  • Policy Tenure: 1 Year
  • Minimum Hospitalization period required –  72 hours

For additional info: click here

7. Saral Suraksha Bima (Personal Accident Policy):

What it is: This is a standard personal accident cover that will be offered on an Individual and family floater basis. In the case of family cover, chosen sum insured will apply to each family member separately.  The premium varies from insurer to insurer.

Who should buy: Accidental policy protects against uncertainties such as accidental death, accidental body injuries, partial and total disabilities. In today’s uncertainty, no one will know when the accident might happen and we might face a financial crisis so it’s better to have protection against it.

Base Covers: 

1.   Death: Under base cover benefit, 100% sum insured will be payable to the nominee on the death of the insured person due to an accident. 

2.   Permanent Total Disablement & Permanent Partial Disablement: In the case of Permanent Total Disability & Permanent Partial Disability, the sum insured will be payable to the insured person due to solely and directly due to an accident. For eg Total & irrecoverable loss of sight of eyes, Physical separation or loss of use of both hands or feet etc.

Optional Cover:
  1. Temporary Total Disablement: The optional cover is available for Temporary Total Disability. In the case of Temporary Total Disability, the insurer will provide 0.2% of the base sum insured as a weekly allowance to compensate for the loss of income. 
  2. Hospitalization expenses due to Accident: Hospitalization expenses arising due to an accident shall be indemnified up to the limit of 10% of the base sum insured.
  3. Education Grant: One-time Educational Grant of 10% of the Base Sum insured, per child, shall be payable on the Death or Permanent Total Disability of the insured person.

Features:

  • Policy Age Holder: Adult 18 years to 70 Years, children – 3mn to 25 years
  • Policy Cover:  Individual & Floater.
  • Minimum Sum Assured: 2.5 Lac
  • Maximum Sum Assured: 1 Cr

For additional info: click here

8. Bharat Griha Raksha (Home Insurance Cover Policy):

What it is: This policy is meant for covering home, building, and home contents. The policy covers for the physical loss, damage, or destruction of the building & home and articles or things in it against a wide range of perils, including fires, natural catastrophes, forest and bush fires, riots, strikes, and terrorism among others.

Policy Coverage:  

1. Home Building Cover: It covers any loss, damage, or destruction of Your Home Building. The sum insured is based on the prevailing cost of construction of your home at the policy commencement date as declared by the individual & accepted by the Insurer.

2. Home Contents Cover: It covers articles or things in your home. The policy has inbuilt cover for General Contents of Your Home equal to 20% of the Sum Insured for Home Building subject to a maximum of ₹ 10 Lakh. You can choose a higher Sum Insured by declaring it in the Proposal Form and paying an additional premium. 

3. Optional Covers:

 i. Cover for Valuable Contents on Agreed Value Basis: Valuable contents of a home such as jewelry, silverware, paintings, works of art, etc. can be covered under this optional cover. A value of these contents may be agreed upon between you and the insurance company based on the valuation certificate submitted by you and accepted by them. If valuable contents are physically damaged by an insured event, the Insurance Company will pay the cost of repairing the item. If the valuable contents are a total loss, the insurance company will pay Sum Insured decided for the item. 

ii. Personal Accident Cover: In the event, an insured peril that caused damages to Home Building and/or Home Contents also results in the unfortunate death of either you or your spouse, the insurance company will pay compensation of ₹ 5,00,000 per person.

Features:

Policy Tenure: 1 Year to 10 Years

For additional info: click here

9. Bharat Sookshma Udyam Suraksha Policy:

What it is:  This policy is meant for enterprises where the total value at risk ranges between Rs. 5 cr and Rs. 50 cr. The policy covers startup expenses, professional fees, removal of debris, costs compelled by municipal regulations, etc. value at risk means the value of property includes buildings, fitting & fixtures, plant & machinery, stock, etc.

Who should buy: This policy is useful for all small-level enterprises such as offices, hotels, industries, and storage firms.

For additional info: click here

10. Bharat Laghu Udyam Suraksha Policy:

What it is:  This policy is meant for enterprises where the total value at risk ranges between Rs. 5 cr and Rs. 50 cr. The policy covers startup expenses, professional fees, removal of debris, costs compelled by municipal regulations, etc. value at risk means the value of property includes buildings, fitting & fixtures, plant & machinery, stock, etc.

Who should buy: This policy is useful for all small-level enterprises such as offices, hotels, industries, and storage firms.

For additional info: click here

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