Population Services International (PSI), an NGO along with Star Health and Allied Insurance Company and the Karnataka Network for Positive People (KNP+) launched the scheme.
The policy is not available to individuals and will be given to a group of about 300. In Karnataka, the policy was given to 250 applicants from six districts Bellary, Mangalore, Mandya, Udupi, Kolar and Mysore.
According to K Sujatha Rao, director general, National AIDS Control Organization (NACO), efforts were on to work on a policy that could get applicants to start saving for medical treatment.
AIDS patients numbering millions in India have largely been ignored by insurance companies until now.