Insurance sector Current Affairs - 2020

Arogya Sanjeevani Insurance Policy: IRDAI launches Guidelines

The Insurance Regulatory and Development Authority of India (IRDAI) has provided guidelines for the health insurance providers to implement Arogya Sanjeevani Insurance Policy. The regulator had earlier made it mandatory for the insurance providers to frame a policy to provide basic coverage to at least 55% of Indian population.

About the policy

The “Arogya Sanjeevani Insurance Policy” guidelines was basically launched to cover the hospitalisation expenses of the COVID-19 patients. The policy is not brought by GoI rather instructed by GoI. So far policies of 29 health and insurance companies to cover COVID-19 have been approved by IRDAI.

Guidelines of the Policy

The cost of the premium shall cover between Rs 1000 and Rs 1 lakh. Interested customers shall opt for coverage up to Rs 5 lakhs. It is to be availed for citizens above the age of 18 years and up to the age of 65 years. The room rent shall also be covered under the policy. It has been capped at 2% of the sum.

IPPB ties up with Bajaj Allianz to offer life insurance products

State-owned India Post Payments Bank (IPPB) and private life insurer Bajaj Allianz Life Insurance Co Ltd (BALIC) have entered into strategic partnership to provide life insurance solutions. It will allow IPPB customers across segments to access wide array of life insurance products and services especially at doorstep. BALIC is the first life insurer to partner with IPPB. This partnership will allow BALIC to leverage IPPB’s last mile reach for building awareness about life insurance.

India Post Payments Bank (IPPB)

IPPB has been set up as Public Limited Company under Department of Posts (DoP) with 100% Government of India (GOI) equity. It was launched on September 1, 2018 in New Delhi. It has begun operations with 650 branches and 3,250 access points across the country. It leverages DoP’s network, resources and reach to make low-cost, quality and simple financial services easily accessible to customers in the country.

It offers basic banking services acceptance of demand deposits, remittance services, internet banking and other specified services. It does not lending services. It can accept deposits up to Rs. 1 lakh per account from individuals and small businesses. It can issue ATM/debit cards but not credit cards. It can also issue other prepaid payment instruments. It can also distribute non-risk sharing simple financial products like mutual funds and insurance products.