The cost of healthcare is increasing daily in India. If you end up in the hospital or are diagnosed with a severe sickness, you might swiftly go through all your money. Resulting to which, hospitalisation can make a hole in your wallet and have a substantial adverse influence on your financial health due to the escalating expense of private medical care in the nation. Investing in medical care policy is a wise move to safeguard your funds. When you get a mediclaim policy, you and the insurance company enter into a contract wherein the insurer commits to cover your medical bills. In this article, let’s examine the advantages and disadvantages of purchasing a mediclaim online.
What is Mediclaim?
A Mediclaim policy, also known as health insurance, covers medical expenses incurred by the policyholder. In India, insurance has become an increasingly popular way for individuals and families to protect themselves against rising healthcare costs. While there are numerous benefits of insurance, there are also some limitations that individuals should be aware of.
Benefits of Mediclaim Insurance
Here are some of the main benefits of purchasing mediclaim:
Provides Financial Protection
One of the primary benefits of medical insurance is that it provides financial protection against unforeseen medical expenses. Healthcare costs in India are rising alarmingly, and even a minor illness or injury can result in significant medical bills. A good health policy can help you avoid dipping into your savings or taking out loans to cover medical expenses.
Covers a Wide Range of Medical Expenses
Insurance policies in India are designed to cover a wide range of medical expenses, including hospitalisation, surgery, diagnostic tests, and doctor’s fees. Some policies also cover pre and post-hospitalisation expenses, ambulance charges, and alternative treatments like Ayurveda and Homeopathy.
Cashless Hospitalisation
Most policies offer cashless hospitalisation, which means that the policyholder can avail medical treatment at network hospitals without paying cash upfront. The insurance company settles the bills directly with the hospital. This is particularly useful in an emergency when you lack cash.
Tax Benefits
Under Section 80D of the Income Tax Act, 1961, individuals can claim tax deductions for the premium paid towards their policy. The tax benefits available depend on the policyholder’s age and the type of policy purchased.
No Claim Bonus
When a policyholder doesn’t make a claim during the term of the policy, a no-claim bonus is offered. The no-claim compensation usually includes an increased sum insured or a reduced premium payable.
Limitations of Mediclaim Plan
Take a look at some of the disadvantages of buying a mediclaim policy:
Exclusions
Mediclaim policies in India come with specific exclusions not covered under the policy. These exclusions may vary from one policy to another but typically include pre-existing conditions, cosmetic surgery, self-inflicted injuries, and injuries from participation in hazardous activities.
Waiting Period
Most policies in India have a waiting period before certain benefits can be availed. For instance, most policies have a waiting period of 30 days for any illness, and two years for pre-existing conditions. The policy will not cover any medical expenses incurred during the waiting period.
Sub-limits
Many policies in India come with sub-limits, which means there is a cap on the amount that can be claimed for certain medical expenses. For instance, a policy may have a sub-limit of ₹10,000 per day for room rent. This can be a significant limitation for individuals who need to avail themselves of expensive medical treatments.
Co-payment
Some policies in India come with a co-payment clause, which means that the policyholder has to bear a certain percentage of the medical expenses. For instance, a health insurance policy may have a co-payment clause of 20%, which means that the policyholder has to pay 20% of the medical bills, and the insurance company will cover the remaining 80%.
Nowadays, mediclaim is crucial to managing rising medical costs. You can receive the appropriate care properly and safeguard your hard-earned cash. So get a health plan that best meets your medical requirements. Ensure to compare mediclaim policy on Niva Bupa’s official website and can choose which one is best for you. Making a choice should not be too tough for you now that you know the benefits and drawbacks of a medical plan.Â
