Hospitalisation can be an extremely stressful time for the patient and his/her family. The financial burden of medical bills only adds to the anxiety. To help alleviate at least the financial strain of hospitalisation, many insurance providers offer Hospital Cash Insurance. This type of insurance policy provides a fixed daily cash benefit during hospitalisation to help policyholders cover any expenses related to their hospital stay. This is because, in prolonged treatments, a patient might have to opt for ‘leave without pay’ or even take a sabbatical affecting his/her income. Let’s explore the benefits of hospital cash insurance and how it can provide financial security to individuals during a time of need.
Your Mediclaim policy covers most of the medical expenses incurred during hospitalisation. However, some miscellaneous expenses are not covered and must be paid from your pocket. This can drain your savings and lead to financial distress. In such situations, hospital daily cash insurance comes to your aid. Now, what is hospital cash insurance?
Hospital daily cash insurance is a policy which provides a fixed lumpsum amount daily to the policyholder in case of hospitalisation to meet the additional expenses which are not covered by a Mediclaim policy. The money can also be used to compensate for the loss of income during hospitalisation. The daily cash allowance, fixed at the time of purchasing the policy, is paid to the policyholder irrespective of the actual expenses and no supporting bills are required. You can buy the hospital cash insurance as an add-on to your standard Mediclaim policy or a standalone plan.
The documents required to avail of the hospital daily cash policy are:
• Proof of hospitalisation and duration of stay in the hospital
• Discharge certificate/summary from the hospital where you were admitted
To make a claim under the hospital daily cash policy, the following conditions should be met:
• The policyholder should be hospitalised for at least 24 to 48 hours.
• There is a limit on the maximum number of hospitalisation days in a policy year which is usually 30,60, or 90 days.
• All pre-existing diseases are not covered, so it is better to check with the insurer before buying the policy.
• There’s a waiting period to avail of this benefit. Until the waiting period is over, one cannot make any claims.
• Certain procedures, like daycare procedures, are not covered.
1. One of the most significant benefits is that the daily hospital cash benefit amount is fixed irrespective of the bill amount. Even if your actual expenses are lesser than the daily allowance, the insurer will still reimburse the fixed amount. You can utilise the extra amount as per your needs.
2. Hospital daily cash policy can take care of the medical expenses and other miscellaneous costs not covered under your health insurance plans.
3. The insurer offers a No Claim Bonus (NCB), that is, a discount on the premium of your health insurance plan if you don’t raise any claim in the policy year. If you have a hospital daily cash policy, you can use it if the expense is affordable and avail of the NCB of your Mediclaim policy. The health insurance plans can be individual health insurance, family floater, or senior citizen health insurance.
Yes, you can do so. Hospital daily cash benefits can be used to cover the expenses that are generally not covered by your health insurance policy. You can use the amount to meet miscellaneous expenses.
To avail of this benefit, you have to show proof of hospitalisation along with the duration of hospitalisation and discharge summary from the hospital.
Yes, you must be hospitalised for a minimum period of 24 to 48 hours.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
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