LIC Arogya Rakshak Plan 906

LIC’s Arogya Rakshak, is a Non-Linked, Non-Participating, Regular Premium, Individual, Health Insurance plan which provides fixed benefit health insurance cover against certain specified health risks and provides you with timely support in case of medical emergencies and helps you and your family remain financially independent in difficult times.

LIC’s Arogya Rakshak gives you following benefits under one policy:

• Flexible benefit limit to choose from Flexible premium payment options
• Valuable financial protection in case of hospitalisation,surgery etc
• Lump sum benefit irrespective of actual medical costs
• Increasing Health cover by way of Auto StepUp Benefit and No Claim Benefit.
• If more than one members are covered under a policy, Premium Waiver for other Insured(s) in case of unfortunate death of the Original Principal Insured i.e. the Policyholder at inception of policy.
• Premium Waiver Benefit for one year in the event of any Insured undergoing surgery falling under Category I or Category II as listed in Major Surgical Benefit Annexure.
• Ambulance Benefit
• Health Check-up Benefit

LIC Arogya Rakshak Plan 906 — A Complete Guide (Features, Benefits, Eligibility, Pros & Cons)

Introduction — Why Health Insurance Matters Today

Healthcare costs in India are rising faster than ever. A single hospital admission can easily result in bills of ₹50,000 to ₹5 lakh depending on treatment, city, and complications. Medical inflation is increasing at 14–16% annually, which means even a basic medical emergency can shake the finances of a middle-class family.

Life Insurance Corporation of India (LIC) has historically focused on life insurance, pension plans, and savings plans. But in recent years, the need for health-focused financial protection has grown sharply. Keeping this need in mind, LIC launched a fixed-benefit health insurance plan called Arogya Rakshak (Plan 906).

It was designed to provide pre-defined, lump-sum cash payouts for hospitalization, surgeries, ICU stay, daycare treatments, and more — regardless of actual medical bills.

This detailed guide explains everything about LIC Arogya Rakshak Plan 906 — how it worked, its advantages, limitations, eligibility, and why LIC eventually withdrew this plan.

What Is LIC Arogya Rakshak Plan 906?

LIC Arogya Rakshak Plan 906 was a:

➡️ Non-Linked
➡️ Non-Participating
➡️ Regular Premium
➡️ Fixed-Benefit
➡️ Individual & Family Health Insurance Plan

In simple terms:

• It is not a savings or investment plan.

• It is not linked to market returns.

• It does not provide bonuses or profits.

• It does not reimburse actual hospital bills.

Instead, it follows a fixed cash benefit model — meaning LIC pays a pre-decided amount for hospitalization or surgery, even if your hospital bill is lower or higher.

Important Note

LIC officially withdrew / discontinued Plan 906 effective 1 January 2025.
???? New customers cannot purchase this plan now.
???? Existing policyholders will continue receiving benefits as per policy terms.

Who Was Eligible? (Entry Age & Family Coverage)

One of its biggest advantages was that multiple family members could be covered under a single plan.

Eligibility Criteria

Coverage Continuation

• Adults were covered until 80 years of age.

• Children were covered until 25 years.

Thus, it worked well as a full-family health protection solution.

Key Benefits of LIC Arogya Rakshak Plan 906

This plan had multiple layers of financial benefits. Let's go through each one in detail.

1. Hospital Cash Benefit (HCB)

This was the core benefit of Arogya Rakshak.

If you are hospitalized for at least 24 hours, LIC pays a fixed daily cash benefit.

How much daily benefit?

At policy purchase, you choose:

➡️ Initial Daily Benefit (IDB)
Starting from ₹2,500 up to ₹10,000 per day.

ICU Benefit

If admitted to ICU, the daily cash benefit becomes:

➡️ DOUBLE of normal daily benefit.

Maximum Claim Limits

• Year 1: Maximum 30 days

• Year 2 onwards: 90 days per year

• Overall lifetime limit: 900 days

This benefit helps you meet expenses like:

• Attendant fees

• Travel cost

• Non-medical expenses

• Food & stay for family

• Loss of income during hospitalization

2. Major Surgical Benefit (MSB)

For major surgeries listed under LIC’s predefined surgery list (like heart bypass, kidney transplant, cancer surgery etc.), LIC paid:

➡️ 100 × Applicable Daily Benefit

Example:
If ADB = ₹5,000
MSB payout = ₹5,00,000 (lump sum)

Multiple Surgeries

• Highest category surgery gets full benefit.

• Additional surgeries in the same session get 25% benefit.

This is very helpful for high-cost medical procedures.

3. Day Care Procedure Benefit

For treatments requiring less than 24 hours hospitalization (minor procedures), LIC pays:

➡️ 5 × Applicable Daily Benefit

Example:
If ADB = ₹6,000
Daycare benefit = ₹30,000

Useful for cataract surgery, dental procedures, minor ENT operations etc.

4. Other Surgical Benefit (OSB)

If a surgery is not major (not in the major list), LIC pays:

➡️ 2.5 × Applicable Daily Benefit

Good for small to medium surgeries.

5. Ambulance Benefit

If major surgery is performed, LIC pays:

➡️ ₹1,000 per event

As ambulance cost support.

6. Premium Waiver Benefit

If a major surgery of Category I or Category II occurs:

➡️ Next premium becomes completely waived

This reduces financial stress during recovery.

7. Auto Step-Up Benefit

To fight medical inflation, ADB increases automatically.

➡️ Every 3 policy years, ADB increases by 15%

Max limit: up to 1.5 times the Initial Daily Benefit

Example:
IDB = ₹5,000
New ADB after step-ups can become = ₹7,500

This made the plan future-ready.

8. No Claim Benefit (NCB)

If NO claims for 3 continuous years:

➡️ 5% of IDB added to ADB

This rewards healthy policyholders.

9. Health Check-Up Benefit

Every 3 years, LIC reimburses cost of preventive checkups:

➡️ Up to 50% of ADB

Useful for routine blood tests, X-rays, and preventive screening.

10. Medical Management Benefit

For specific diseases like:

• Dengue

• Malaria

• Hepatitis A

• Pneumonia

• Typhoid

• TB etc.

LIC pays fixed benefit without surgery.

11. Auto Health Cover (AHC) — A Big Family Support

If Principal Insured (PI) dies:

➡️ All other insured family members remain fully covered

➡️ WITHOUT paying future premiums

Coverage continues for 15 years or until the remaining member reaches exit age.

This was a powerful feature — especially for families depending on a single earning member.

Why People Preferred LIC Arogya Rakshak 906

Many Indians found this plan valuable because:

✔ Fixed cash benefit helps even when hospital bills are unpredictable

You always know how much LIC will pay.

✔ Suitable for large families

One plan → multiple people → single premium structure.

✔ Good for middle-class families

Helps manage non-medical costs too.

✔ Extra benefits increase over time

Step-Up + No Claim Bonus = Growing protection.

✔ Premium waiver reduces burden during major surgery

Excellent during difficult times.

✔ Auto Health Cover protects family after PI’s death

Rare and valuable feature.

✔ Useful even when employer coverage fails

Employer health insurance often ends after leaving job/retirement.

Limitations of LIC Arogya Rakshak 906 (Things to Know)

No plan is perfect. Arogya Rakshak also had limitations.

1. Plan Discontinued — No New Purchase Allowed

Since 1 January 2025, the plan is officially withdrawn.
If you do not already have it, you can’t buy it.

2. It Does NOT Reimburse Actual Bills

If your treatment cost is ₹3 lakh but your fixed benefit pays only ₹40,000 — the remaining amount must be paid from your pocket.

Thus, it is not a replacement for corporate health insurance or cashless reimbursement policies.

3. Premiums Can Be Expensive at Higher HCB Levels

If IDB = ₹10,000 per day and many family members are added, premiums get high.

4. Many Conditions & Clauses

• 24-hour hospitalization requirement

• ICU stay rules

• Restrictions in first year

• Waiting periods

• Non-payable events

• Limits on multiple surgeries

People unfamiliar with policy language may feel confused.

5. Not a Savings or Investment Plan

No maturity value, no bonus, no return of premium.

If you expect returns → this plan is not for you.

6. Benefit May Not Be Enough for Major Illnesses

Fixed benefit amounts sometimes fall short during:

• Cancer treatment

• Organ transplant

• Multiple ICU days

• Long hospitalization

Actual expenses may exceed fixed payout.

7. Claim Rejection in Some Cases

If hospitalization does not meet conditions, benefit may not be paid.

Why LIC Might Have Withdrawn This Plan

Though LIC didn’t publicly explain reasons, possible factors include:

1. Rising healthcare costs

Fixed benefits might have become inadequate or actuarially unsustainable.

2. Low demand vs reimbursement-based plans

Most customers prefer cashless reimbursement policies.

3. Complex benefit structure

Multiple benefit categories made it difficult for customers to understand.

4. High claim liability for LIC

Major surgeries + ICU + step-ups could create high payout liability.

Is Arogya Rakshak 906 Good for You Today? (If You Already Have It)

If you already own this policy:

✔ Keep it active.

It offers rare benefits like:

• Family auto cover

• Premium waiver

• Fixed cash benefit

• Health check-ups

• Step-up increment

These benefits are useful even along with another health insurance policy.

✔ Do NOT depend on it as your only health cover.

You should also buy a cashless reimbursement health insurance policy of at least ₹5–10 lakh sum insured.

✔ Great as a supplementary policy

Works very well along with:

• Corporate Mediclaim

• Family floater policies

• Super top-up plans

If You Don’t Have the Plan — What Should You Do Now?

Since LIC Arogya Rakshak 906 is discontinued, consider these options instead:

LIC Health Insurance Alternatives

1. LIC Arogya Sanjeevani

2. LIC Cancer Cover Plan

3. LIC Health Protection Plus (if revived)

Private Health Insurance Alternatives

1. HDFC Ergo Optima Restore

2. Care Health (Care Plus / Care Advantage)

3. Star Health Family Floater

4. ICICI Lombard Health Shield

5. Tata AIG Medicare Premier

These policies offer:

• Cashless hospitalization

• Reimbursement of actual costs

• Higher sum insured options

• Coverage for modern treatments

Conclusion

LIC Arogya Rakshak Plan 906 was a unique fixed-benefit health insurance plan offering:

• Daily hospital cash

• Major & minor surgery benefits

• ICU benefits

• DayCare payouts

• Premium waiver

• Auto step-up increments

• No-claim bonuses

• Family coverage

• Auto Health Cover after PI death

However, because its benefits were fixed and not linked to actual hospital expenses, it was best used as a supplementary plan, not a complete health insurance solution.

Today the plan is discontinued, but if you already own it — keep it active and use it along with other modern health insurance plans.