What are the different Types of Health Insurance Policies currently being sold in India?
The different types of popular health insurance in India are:
The most popular and most sought after forms of health insurance in India are indemnity based health insurance plans, also commonly known as “Indian mediclaim insurance”, which cover the costs incurred for inpatient treatment received by the insured during the period of the policy. These India health insurance coverage provide cashless hospitalization or reimbursement of any expenses incurred in the event of hospitalization, diagnostic requirements during this treatment and post hospitalization medical care. The mediclaim insurance coverage in India can be offered as:
- Individual India Health Insurance Plan - Individual health insurance coverage in India provides a separate and designated sum insured for each insured member. So, with these type of best individual health insurance policies, one member’s medical expenses do not impact the coverage for another family member
- Family Floater mediclaim Insurance Plan - The family floater insurance coverage in India plan provides coverage to the entire declared family under a single sum insured. Specifically designed for nuclear families, here a fixed sum insured is available for any or all the family members insured under the plan for all claims during the tenure of the policy. A family is normally defined to include the individual, spouse, dependent children, parents and parents-in-law. Thus, if one member ends up using a large portion of the sum insured, the other member may fall short of cover when needed.
It is most definitely recommended that every individual/family have a Good reimbursement/indemnity health insurance policy to ensure they are protected against expenses related to unexpected hospitalization. It is important to note that in case persons are not covered under the best India health insurance, all such medical expenses are borne out of their hard earned savings.
Fixed benefit health insurance plans
Fixed benefit insurance offer a fixed benefit on the occurrence of certain defined medical situations, like the Diagnosis of a Critical Illness, Accident Related Hospitalization, Hospital Cash Benefit etc. Such plans are purchased to not only cover expenses related to hospitalization but also compensate the insured for loss of income during the injury period.
The two specific advantages of such plans is
- that they pay the complete sum insured on first diagnosis/occurrence of the incident, irrespective of the expenses incurred by the insured for treatment of the medical condition and
- such a payout is over and above what an health insurance plan will pay to the insured by way of reimbursement or cashless expenses. Importantly one must understand that the limitation of such a plan is that it may or may not cover all medical contingencies. The variants include:
- Critical Illness Indian health insurance(CI)– CI plans offer a fixed lump sum payment on the diagnosis of the defined critical illnesses. Each insurance company provides a list of Critical Illnesses covered under their CI plans that are covered and the benefit is paid on diagnosis of any of these illnesses. Such a payment also provides an income for the insured.
- Indian Accident Insurance - These plans offer a defined lump sum benefit on the unfortunate incident of an accident to the insured resulting in Death, Dismemberment, Disability, Broken bones, Burns etc. These plans could also cover Education Expenses for the insured’s children as well as Ambulance expenses.
- India Hospital Cash/Surgical Benefit Insurance – Such plans pay the lump sum benefit of the Sum insured as Hospital Cash, which is a defined per day allowance while the insured is hospitalized following an accident or sickness towards incidental expenses incurred by the insured. Surgical plan on the other hand take care of any major or minor surgery that the insured may need to undergo.
Hence Fixed benefit India mediclaim insurance are essentially like top-up policies, which can supplement the base indemnity coverage of the individual but is not a substitute for the same.