What is Mediclaim?

A common area of confusion for most people is the difference between health insurance and Mediclaim, often mistaking one for the other. Even though both offer financial protection during emergencies, Mediclaim is not just another word for health insurance.

A Mediclaim policy is a sort of health insurance policy in which the insurer reimburses the policyholder for medical expenses incurred in treating their medical condition. If you have a medical insurance policy, you can submit your bills to the insurance company for payment. Alternatively, you can opt for the cashless treatment option which makes the insurance company and hospital administrator responsible to settle the medical bills.

Mediclaim insurance is designed to provide policyholders with financial backup during medical emergencies. To understand what is medicalim policy and how it works, you need to know the following things about it:

•  Provides Coverage - It covers the cost of hospitalization due to accident, surgery, or critical illness throughout the policy period.
•  Premium Payments - Like all other forms of health insurance, you must routinely pay a premium amount to avail the benefits of Mediclaim.
•  Renewal Terms - However, Mediclaim comes with a pre-specified insurance cover, and you need to renew the policy at the end of every term to keep enjoying the perks.
•  Settlement Options - As per your preference, you can either opt for Mediclaim offering cashless hospitalization or reimbursement settlement. Cashless hospitalization Mediclaim is much more convenient as the bills are settled by the insurance provider directly with the hospital. Whereas the reimbursement method requires you to settle the expenses from your own pocket, and the total amount is then reimbursed by the insurer.

After addressing some basic questions like what is Mediclaim? And how does Mediclaim work? It is now time to understand the distinction between health insurance and Mediclaim insurance. Even though Mediclaim sounds a lot like health insurance, there are some major differences between the two. Here are some key pointers that will help you understand the dissimilarities between Mediclaim and health insurance:

Many people are often under the impression that there is only one type of Mediclaim policy, but it has several variations. Keep on reading to know more about the most popular Mediclaim policies available to policy buyers.

If you are new to the concept of Mediclaim, the first few things that must have popped in your head would have been: What is Mediclaim policy? How is it different from health insurance? And what are its types? Although we have answered all these questions, we haven’t yet covered the features of Mediclaim.

While the features of each Mediclaim policy vary based on the insurance provider, here are some common ones that can be found in most plans:

The inclusions can slightly differ depending on the type of Mediclaim and the insurance provider. However, here are the general inclusions of a Mediclaim policy:

•  In-Patient Hospitalization – It covers the expenses incurred in case the insured person is hospitalized for 24 hours or more.
•  Day Care Treatment – Treatments that do not require hospitalization will also be covered under the Mediclaim policy.
•  Pre-And Post-Hospitalization Cover - Medical expenses incurred prior to being admitted to the hospital and after being released from the hospital are covered.
•  Domiciliary Hospitalization - Domiciliary treatment is treatment provided at home due to a lack of hospital beds or when the insured is unable to be transferred to a hospital.
•  Annual Health Check-Ups - Almost all health insurance policies cover free preventative health screenings once every one to four claim-free policy years.
•  No Claim Bonus – For every year that goes by without the policy being claimed, the insured person is given a bonus in the following policy year.

Anyone who wishes to secure the future for themselves and their family members against health problems should consider buying a Mediclaim policy. Regardless of your marital status or life stage, it is crucial to protect yourself against the rising costs of healthcare. Hence, having a sound financial support system for such expenses can prove immensely helpful.

It is not news to anyone that we are surrounded by an increasing number of lifestyle diseases. Moreover, considering the hospitalisation costs and general inflation, it is in your best interest to understand what is Mediclaim an how it can help you

Here are some reasons you should consider it:

• It provides a financial safety net in the event of a medical emergency.
• A cashless hospitalisation facility is available which makes it more convenient for you to get healthcare during a medical emergency. Hospitalization costs are managed by the insurance company.
• It is an affordable method of receiving healthcare services and reduces the budgetary burden
• Most importantly, it gives you peace of mind that you will be able to meet the costs and receive quality healthcare.
• Individual and family floater mediclaim insurance are available so you can choose whichever fits your financial and health needs.
• Premiums paid for a medical insurance coverage are eligible for tax benefits.

Now that you know what is Mediclaim policy, let’s talk about how you can find the right policy. Although there is no formula to finding the best Mediclaim policy, the first step should be to assess your needs. Or if you are buying Mediclaim for family, evaluate their medical requirements, post which you can consider the following factors to make an informed decision: