is there any difference between health insurance and mediclaim policy
DESCRIPTION
A common mistake lot of insurance seekers commit is that they believe they have adequate health insurance when they subscribe to a mediclaim policy. While mediclaim polices have their own individual benefits, it does not offer a substantial cover for common illnesses and health conditions. A lot of uninformed users are of the opinion and health insurance and mediclaim are one and the same. The fact of the matter is that mediclaim polices offers security cover only for hospitalization expenses of the policy holder while health insurance provides a far more comprehensive coverage including pore and post hospitalization expenses as well as other health insurance riders if opted for.TRANSCRIPT
Difference between Health insurance and Mediclaim Policy?
Understanding Mediclaim Policies
Mediclaim is an insurance policy that is designed to offer protection for any hospitalization expenses incurred by the policy holder. The premium of any mediclaim policy is based in the total sum assured. Treatment towards any accident or pre specified illnesses up to a certain limit as per the assured sum are covered under the policy. The upper cap on the sum insured does not exceed 5 lakhs in a typical mediclaim policy. Mediclaim policies are based on the principle of indemnity which reimburses the losses incurred by a policy holder during hospitalization while treatment of certain pre specified diseases.
An Overview of Health Insurance Policies
Health insurance policies especially those issued by various health insurance companies provides a more comprehensive coverage including pre and post hospitalization expenses as well as health cover on more than 30 critical illness and diseases. For filing a health insurance claim, a hospitalization is not compulsory and any health insurance claims can be filed on the basis of diagnosis of the disease by a registered medical practitioner or specialized doctor. The upper cap on the sum insured for health insurance policies is quite substantial and can go as high as Rs 60 Lakhs. Furthermore health care insurance policies offer a flexibility to reduce the insurance premium after specific period of the policy. Discounts are also offered for individuals with health insurance policies in case the sum assured is above a stipulated limit depending on the insurance company. The discount for premium is usually set for policies above Rs. 10 Lakhs.
How to Differ Mediclaim from Health Insurance
• Taxation benefits-The amount paid towards mediclaim premium including that paid for self, spouse or children is eligible for tax exemption of Rs 15,000 under section 80D. The Assesse can get another exemption of Rs 15,000 on mediclaim premium for each parent which is extendable to Rs 20,000 in case the parents of the assesse are senior citizens.
• Claims: In case of mediclaim policies, the insurer can make a number of claims until the sum insured is exhausted.
Benefits Of Health Insurance
• Taxation benefits: Health insurance premium provide tax exemption under section 80D of Income Tax Act 1961.
• Claims: Health insurance policies on the other hand are made up of many different payment modules.
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