How Mediclaim differs from a health insurance policy

TomorrowMakers ™

How Mediclaim differs from a health insurance policy

26 October 2017
Health insurance and mediclaim policy are two terms that often creates confusion, read this article to understand the difference between the two
 
 

Most people believe that Mediclaim is the same as a health insurance policy, which is not the case. While Mediclaim is limited to domiciliary care and hospitalisation expenses, health insurance has a much deeper coverage. For instance, health insurance plan may also include pre and post hospitalisation expenses, and several other charges. Here’s how an individual Mediclaim policy differs from an individual health insurance plan.

Related: Group health insurance vs Individual health insurance

Mediclaim

• Mediclaim is a form of health insurance. The main feature is the hospitalisation expenses and treatment towards an accident or specific illness.

• It is generally for a pre-specified sum. The premium of the Mediclaim depends on the sum insured, gender, age of the proposer, geographical area of the treatment and term of plan. 

• Through a Mediclaim policy, you can either be reimbursed for hospitalisation  expenses or you can opt for a cashless procedure, wherein your insurer will pay the hospital directly.

• A Mediclaim premium, for either self or for a dependent like a spouse or children, comes under the tax exemption – Section 80D of Income Tax Act 1961 too.

Health Insurance

• Health insurance plans are more comprehensive than Mediclaim

• They provide greater cover, including comprehensive critical illness (CI) cover for more than 30 illnesses as per some health insurance plans. However, a CI rider is not part of basic health insurance, but must be bought as an add-on. 

• You can also avail the discount on the premium for health insurance if the insured sum is more than, say Rs. 10 lakhs. 

• Some health plans also offer a co-payment feature, which helps lower your premium. Here, part of a treatment is paid by you, while the rest is taken care of by your insurer. 

• Health insurance premium also provides tax exemption under section 80D.

Related: 9 rules while buying health insurance [video]

Difference between Mediclaim and Health insurance

The stark differences between the two are:

• Mediclaim is mainly for covering hospitalisation expenses. A health insurance plan covers hospitalisation expenses, pre-post hospitalisation expenses, ambulance charges, compensation for the lost income, etc. depending on the policy benefits. 

• The hospitalisation cover in Mediclaim is limited which mostly does not exceed 5 lakhs. In health insurance, cover given is more extensive and the sum insured can exceed 60 lakhs.

• Hospitalisation is necessary to avail Mediclaim benefits, which is not necessarily the case with health insurance.

• In a Mediclaim policy, the hospitalisation expenses incurred can either be reimbursed or cashless, in which case your insurer pays the hospital directly. A health insurance plan, on the other hand, can be cashless, or provide reimbursements on treatment costs and could even pay out a lump sum in case of an eventuality (e.g. Critical illness plans, Hospital Cash plans).  

Related: How to meet out-of-pocket expenses with Daily Hospital Cash plans

When deciding between these two types of policies, it is important that you take into account the kind of cover you need, your medical history, current financial situation, etc. This will help you find a policy that is just right for your needs. 

 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or insurance or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.

 

 

Quotes of The Day

POLL

 

MOST VIEWED CONTENT

Eight health insurance myths debunked

Eight health insurance myths debunked

There are certain myths around health insurance which might deter one from taking an informed decision. Here are some common myths busted

Best smartphone apps to track your health

Best smartphone apps to track your health

Looking for a way to take care of yourself in a cost-effective, convenient way? In technology lies the answer!

Group health insurance vs Individual health insurance

Group health insurance vs Individual health insurance

Though both Individual and Group Health Insurance Plans provide similar coverage, they do differ in various aspects, such as cost and customisation.

Health Insurance cover you must get at different stages of life

Health Insurance cover you must get at different stages of life

With age, your needs increase for this its important to pick the right cover for your life stage. Reviewing your plan at different stages can ensure you get 360° protection.

6 Things You Didn't Check Before Buying Health Insurance

6 Things You Didn't Check Before Buying Health Insurance

From concealing medical history to ignoring the fine print of a policy, here are 6 common mistakes to avoid while buying health insurance.

Health check ups at different stages of life [infographic]

Health check ups at different stages of life [infographic]

Sickness can strike anytime, but with regular health check ups, you can ensure that you plan for it, rather than being caught off guard.

Terminal illness benefit

Terminal illness benefit

A terminal illness is a rapidly advancing and incurable medical condition. When diagnosed with a terminal illness, there is no option but to resort to palliative care because the victim has a lowered life expectancy.

boy

We would love to hear from you!

Question, comment or concern? Our contact form is the best way to get in touch. We will respond to you within 5 working days.

NEWSLETTER