SBI General Insurance Co. has reportedly discontinued its low-cost health plan, Arogya Plus Health Policy, in a possible regulatory breach. The policyholders have been asked to either exist the policy or switch to other health plan, more expensive ones, NDTV Profit reported.
Arogya Plus provided coverage on an Indemnity basis up to a specified sum insured at a flat premium. Flat premium is irrespective of age of insured and family combination. The policy was available on Individual basis, Family Non-floater and Family Floater sum insured basis. The policy had no caps on room rent or age-related charges.
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The report further said that the company’s website is not supporting the renewal or new purchase of its Arogya Plus Health Policy.
Speaking about the issue, insurance expert Ankit Mehta said: “Discouraging agents and relationship managers from selling/renewing the policy and claiming withdrawal or discontinuation without notice is actually against the rules laid down by the insurance regulator.
As per norms laid by the Insurance Regulatory and Development Authority of India, an insurer is required to obtain approval from the regulator before withdrawing or closing a particular product. The insurer has to provide a 90-day written notice to the existing policyholders.
SBI General Insurance registered a significant growth of 50% in the month of December 2023, leading to GDP of Rs 1001 crore. The company contributed around 14% to the overall accretion of private insurance industry, marking the highest accretion in the month of December FY 24.
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The company’s diverse product portfolio, combined with its distribution and its reach has resulted in SBI General improving its private market share to 6.41% in the month of December FY 24, with an improvement of 137 basis points in market share over the corresponding month of last financial year.
In the 9M FY 23-24, the General Insurance industry registered a growth of 14%, while the company has registered a growth of 23%.
