It is fairly common for people, especially first time buyers, to opt for a mediclaim policy thinking that they have a health insurance policy.
What is Mediclaim?
Mediclaim policy offers specified financial protection against health-related expenses. The coverage is normally limited to hospitalization and the insured must bear other expenses.
Features of Mediclaim
● Coverage – Mediclaim covers hospitalization expenses, treatment expenses due to an accident and specific diseases.
● Sum Assured - The sum assured is pre-decided.
● Factors Affecting Premium – The premium for mediclaim is based on the sum insured, the proposer’s age, sex, location and duration of the preferred plan.
● Claim Settlement – Under mediclaim one can either avail cashless treatment or opt for reimbursement.
● Tax Exemption - The plan offers tax benefit as per Section 80D of IT Act 1961.
What is Health Insurance?
Health insurance covers the cost of medical and surgical expenses for the insured. The cover is extensive and usually more expensive than a Mediclaim Policy.
Features of Health Insurance Plan:
● Coverage- Health insurance plan offers comprehensive insurance coverage, including critical illness cover for up to 30 plus illnesses. The critical illness rider isn’t, however, a part of the plan, and must be bought as an add-on.
● Discounts- There are discounts available on plans with a high sum insured.
● Co-payment- There’s an option of co-payment wherein a part of the treatment is paid by the insured and the rest by the insurer.
● Tax Benefits- Health insurance also provides tax exemption under section 80D.
Health Insurance vs Mediclaim
In the battle of health insurance vs mediclaim, there is no winner or loser. Both aim to reduce health-related risks and exist to fulfill the insurance needs of buyers.
Now that you know the difference between mediclaim and health insurance, we hope you will be able to pick the one that better suits your needs.