Health insurance Vs Mediclaim: Key differentiators to help you make an informed choice

It is fairly common for people, especially first time buyers, to opt for a mediclaim policy thinking that they have a health insurance policy.

Read on to find out more about mediclaim and health insurance benefits, and the key difference between the two.

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

Summing up

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.


ManipalCigna Health Insurance Company Ltd (Formerly known as CignaTTK Health Insurance Company Limited) | CIN U66000MH2012PLC227948 | IRDAI Reg. No. 151 
Reg. Office: 401/402, 4th Floor, Raheja Titanium, off. Western Express Highway, Goregaon (East), Mumbai- 400 063 | Toll free number – 1800-102-4462 | Website address –
Trade Name / Trade Logo belongs to MEMG International India Private Limited and Cigna Intellectual Property Inc. and is being used by ManipalCigna Health Insurance Company Limited under license. For more details on risk factors, terms and conditions, please read the sales brochure/ sales document available on our website (Download section) before concluding a sale.

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