A hospicash or hospital fund plan is an insurance plan that provides an insured lump sum to cover miscellaneous expenses for each day of hospitalization exceeding 24 hours. You can purchase such plans as an addition to your existing health policy. Abhishek Misra, CEO and Senior Director of Bonanza Insurance, explains, “Suppose a person buys hospicash coverage that provides coverage for ₹2,000 per day in the event of hospitalization. In this case, if the hospitalization is two days, the person will receive an amount of ₹2,000 for the 2nd day of hospitalization as a minimum of 24 hours of hospitalization is required for claims. You can use ₹2,000 for miscellaneous expenses such as travel for your family members or the cost of surgical equipment, etc., which the basic health insurance plan does not usually cover.”
It should also be noted that the duration of receipt of hospital allowances varies from one insurer to another. However, these plans are most often available for 15, 30 and 45 days. Aatur Thakkar, co-founder and director of Alliance Insurance Brokers, said: “The hospital cash plan also comes with a waiting period clause, but the waiting period is short and you must be hospitalized for at least 24 hours.”
You can purchase such a plan with your existing health insurance plan. Standard eligibility criteria generally include adults aged 18 to 65 and children aged 6 months to 25 if parents are concurrently insured. In addition, to claim hospital cash per diem, you must share documentation with the insurer showing that you have been admitted to hospital. You can share copies of evidence to show the length of hospital stay.
Advantages: An existing health insurance plan may have sub-limits and may not cover miscellaneous expenses such as lost wages, cost of attendants, household expenses, x-rays and cost of surgical equipment, etc. A hospital cash benefit plan can help recover the cost of such expenses.
Rakesh Goyal, Director of Probus Insurance, said: “Hospicash is one of the best options for covering additional expenses in the event of loss of income. This plan saves on the bonus-malus (AON) for minor medical expenses. There is no need for supporting invoices under this plan. Moreover, even if the actual expenses are less than the lump sum, the insurer will not ask for the additional amount. » For example, even if your daily usage is less than the fixed amount of ₹2,000 per day (as set when purchasing the plan), you will still be paid the specified amount.
What is not covered? Hospitalizations of less than 24 hours are not covered by these plans. Goyal said: “The plan has some exclusions. For example, fertility-related diseases, self-inflicted injuries, cosmetic surgeries, pre-existing conditions, non-allopathic treatments are some of the common issues excluded from the hospicash plan.”
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