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On 19 July, Life Insurance Corporation of India (LIC) has introduced a benefit-based health insurance policy, Arogya Rakshak. The policy is a non-linked, non-participating, regular premium, individual health insurance. As stated by 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." 

The plan is focussed to provide timely support in case of medical emergencies and helping the insured and his/her family to remain financially independent in difficult times. It differs from the conventional health insurance plan in terms of method of payment. While the latter re-imburses the actual cost incurred on treatment, 

As reported by Hindustan Times, Arogya Rakshak provides fixed benefit health insurance cover. It pays a lump sum benefit irrespective of actual medical costs.Individuals can insure themselves (as the principal insured), their spouse, all children, and parents under one policy. The policy is available for principal insured/spouse/parents aged between 18 and 65, and children of age 91 days to 20 years. The cover period available for principal insured/spouse/parents is up to 80 years, while the same is available for children up to 25 years only.

Benefits of the new plan

• 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 policy holder 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 available under the policy.