FOR EXISTING POLICY
FOR NEW POLICY
Hospital cash insurance or HospiCash benefit offers a lump sum payment to the insured patient every day of their hospitalisation to cover additional expenses that health insurance does not cover. This is either included as a built-in cover in health policies or available as an add-on#.
Hospital cash insurance is medical expense coverage provided under health policies that can be used to cover additional medical costs that come with hospitalisations. This coverage is provided as a lump sum payout to the insured patient each day of their hospitalisation.
The money can be used to cover expenses like X-rays or other medical test costs, surgical accessory costs, visitation fees, etc., and can also be a way to compensate for any loss of income that results from a hospitalisation.
If this sounds like something you want to add to your health insurance policy, read on to learn more.
What is Hospital Cash Insurance?
Hospicash insurance is an insurance policy that provides a fixed lump sum payment each day of your hospitalisation. Depending on your policy and insurer, this payout can be anywhere between ₹100 - ₹10,000.
This benefit can only be claimed under your medical insurance if your hospitalisation exceeds 24 hours.
A hospital cash benefit is included under your health insurance plan as a part of your base policy, or it can be added to your plan as an add-on# cover. This can be done either on policy purchase or renewal.
How to Claim Daily Hospital Insurance Under My Health Plan?
Upon hospitalisation, you must contact your insurer and file a claim. The documents required to claim your daily hospital cash policy are as follows:
- Valid hospitalisation proof and duration of hospital stay.
- Discharge certificate/summary from the hospital you were admitted to.
Coverage Under Hospital Cash Insurance
Like choosing your health policy's sum assured, you need to choose your hospital daily cash policy's benefit amount before you commence coverage. These can be ₹500 /₹1,000 /₹1,500 / ₹2,500 or ₹3,000 or more, depending on your insurer.
You can also get daily hospicash benefits without submitting supporting bills for more than 24 hours of hospitalisation. This daily cash allowance is only paid if the hospitalisation becomes admissible.
Limitations Under Hospital Daily Cash Policy
- Your hospitalisation should exceed at least 24 to 48 hours.
- Your policy will have a maximum number of hospitalisation days in a policy year – usually 30, 60, or 90 days.
- Pre-existing diseases are usually not covered. We recommend checking with your insurer or reading the policy wording before buying hospital insurance.
- There is a waiting period of 24 hours to claim this benefit. The waiting period is only waived in the case of emergencies or accidents.
- Certain procedures, like daycare procedures, fertility-related illnesses, non-allopathic treatment, and cosmetic surgeries, are not covered. It also does not cover self-inflicted injury.
Disclaimer: The limitations/exclusions will vary depending on insurers and the policy's terms. It is always best to check your policy wording or directly check with your insurer before buying any add-on riders#.
Benefits of Daily Hospital Cash Insurance
- Standard Daily Allowance: You get paid a standard lump sum amount irrespective of the amount stated on your hospital bill. Upon payment, this amount can be used for anything and to pay for any medical expense incurred during your hospital stay.
Moreover, you can make your claims under your daily hospital cash policy and base medical insurance policy simultaneously. - ICU expenses: Generally, hospital cash insurance covers offer double the standard payout amount for ICU stays, as they tend to be more expensive than regular hospitalisations.
In the case of major surgeries directly involving organs like the brain, heart, liver, or lungs, the benefit can be 20 times the standard payout. In the case of minor surgeries, the benefits can be five times the payout. - No Claim Bonus (NCB) Protection: You can apply for claims under this cover if your hospital expenses are negligible or fall within the standard payout amount. This lets you keep your accrued NCB under your main policy.
- Tax* Benefits: Under Section 80D of the Income Tax Act, you can get a tax* deduction of up to ₹25,000 for annual premiums paid towards hospital cash insurance. Senior citizens can claim up to ₹30,000.
Conclusion
It may be surprising to find that your health insurance does not cover all of your hospitalisation expenses as additional expenses like family visitation charges, certain medical tests like X-rays, and surgical accessories must be paid out-of-pocket.
Therefore, a hospicash benefit under your policy could be the perfect solution. This is more exemplified in the event of cashless claims, as it mitigates the need for you to gather any last-minute funds in an emergency. This way, you are not blind-sided by any out-of-pocket medical expenses.
