SBI General Insurance Stops Its Popular 'Arogya Plus' Plan, Customers Feel Cheated

The company's website does not support the renewal or new purchase of its Arogya Plus Health Policy. Policyholders and distributors NDTV Profit spoke with said that the product has been discontinued. They spoke on the condition of anonymity as the insurer has not made any public disclosure.

The policy promised a flat premium for life, with no caps on room rent and no age-related charges, drawing customers. But they now feel cheated.

Arogya Plus was one of the most popular policies of SBI General because of the low premium and coverage for the entire family at a flat premium irrespective of age, chartered accountant Ankit Mehta, an insurance expert, told NDTV Profit. "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."

Insurance Regulatory and Development Authority of India requires an insurer to obtain an approval from the regulator before withdrawing or closing a particular product. And the insurer has to provide a 90-day written notice to the existing policyholders.

SBI General Insurance, Mehta said, "probably failed to do both". The company could have revised the product premium as mentioned in its terms or withdrawn the policy by following a proper procedure, he said.

In response to NDTV Profit's queries, SBI General Insurance said the renewal of 'Arogya Plus' is available. "We adhere strictly to regulatory norms. Our unwavering commitment to maintaining the highest levels of quality and transparency underscores our dedication to providing reliable insurance solutions."

An existing policyholder told NDTV Profit that their relationship manager refused to renew their family's 'Arogya Plus' plan for the upcoming year and asked them to migrate to another plan with high premium.

Agents, relationship managers and customer care executives also confirmed to NDTV Profit the product has been discontinued and they urged policyholders to migrate to newer options.

The company's official website excludes the product from the renewal dropdown.

The company's website does not support the renewal or new purchase of its Arogya Plus Health Policy. Policyholders and distributors NDTV Profit spoke with said that the product has been discontinued. They spoke on the condition of anonymity as the insurer has not made any public disclosure.

The policy promised a flat premium for life, with no caps on room rent and no age-related charges, drawing customers. But they now feel cheated.

Arogya Plus was one of the most popular policies of SBI General because of the low premium and coverage for the entire family at a flat premium irrespective of age, chartered accountant Ankit Mehta, an insurance expert, told NDTV Profit. "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."

Insurance Regulatory and Development Authority of India requires an insurer to obtain an approval from the regulator before withdrawing or closing a particular product. And the insurer has to provide a 90-day written notice to the existing policyholders.

SBI General Insurance, Mehta said, "probably failed to do both". The company could have revised the product premium as mentioned in its terms or withdrawn the policy by following a proper procedure, he said.

In response to NDTV Profit's queries, SBI General Insurance said the renewal of 'Arogya Plus' is available. "We adhere strictly to regulatory norms. Our unwavering commitment to maintaining the highest levels of quality and transparency underscores our dedication to providing reliable insurance solutions."

An existing policyholder told NDTV Profit that their relationship manager refused to renew their family's 'Arogya Plus' plan for the upcoming year and asked them to migrate to another plan with high premium.

Agents, relationship managers and customer care executives also confirmed to NDTV Profit the product has been discontinued and they urged policyholders to migrate to newer options.

The company's official website excludes the product from the renewal dropdown.

NDTV Profit called the customer care with a policy number and was told the policy had been withdrawn and that it would have to be migrated to SBI General's other plans.

The catch is that none of these substitute products offer a flat premium for lifetime or offer no age-limit, no caps on room rents, no co-payment and such other features.

The current 'Arogya Plus' policy costs Rs 10,502, inclusive of GST, for a sum insured of Rs 3 lakh. But premiums of other options are two to five times more, starting at Rs 17,000-18,000 with non-claim conditions and go up to Rs 45,000-Rs 50,000, with a higher sum insured.

There is one more issue. A policyholder told NDTV Profit that in case they want to switch the insurer, no other private general or health insurance companies offers a sum insured of Rs 3 lakh.

The minimum is Rs 5 lakh or Rs 10 lakh, leading to higher premiums and comes with medical tests and other conditions and a variable loading percentage in case of pre-existing ailments, the policyholder said on the condition of anonymity.