There are several bills that need to be paid when it comes to hospitals and medical emergencies. While you are running around filling up all the paperwork and worrying about the treatment and/or recovery of the patient, it could sometimes get difficult to keep track of how much money is being spent in the entire process. To make things easier for you, a hospital daily cash policy could be helpful.
Important Update (Dated May 30, 2024) – Good news for Health Insurance policyholders! According to the Master Circular on Health Insurance Business 29052024 rolled out on May 29, 2024 by IRDAI, insurers are to decide on the request for cashless claims within 1 hour of receiving the request. Also, the final claim is to be granted within 3 hours after the policyholder’s discharge from the hospital. Insurers have been directed by IRDAI to establish necessary systems and procedures for this process by July 31, 2024.
The Master Circular on Health Insurance Business 29052024 circular is available here - https://irdai.gov.in/document-detail?documentId=4942918
Apart from your hospitalisation bills, there are several other miscellaneous and inevitable expenses that may crop up during the hospitalisation period. While your health insurance plan may cover your hospitalisation charges, you will have to pay out-of-pocket for these miscellaneous overheads. This is where hospital daily cash policies come in handy.
Under a hospicash insurance policy, you will be entitled to a fixed sum insured every day during the hospitalisation period. This hospi cash or daily allowance can be used to meet miscellaneous expenses resulting from your hospital stay like the cost of travel. Such fixed allowances can also be used to compensate for the loss of income for the days you are confined to the hospital. Usually, this cash allowance ranges from ₹250-₹5,000, but can vary depending on the terms of your insurance document. You can either health insurance plan with daily cash benefits or opt for the same as an optional cover along with your existing health plan.
You would need the following documents to claim the daily cash benefit in your health insurance policy:
Proof of your hospitalisation for any length of time
Discharge summary from the hospital
The fixed daily cash benefits in health insurance plans help you take care of all miscellaneous expenses during a hospital stay. This amount is fixed, irrespective of your actual expenses, and can be used in a way you deem fit.
Having access to a daily cash reserve to fall back on can make a significant difference when faced with a healthcare emergency. In times of unfortunate events like accidents or emergency ICU admissions, the financial support provided by hospital daily cash benefits helps mitigate some of the financial stress on an individual. For instance, such policies offer twice the normal cash allowance if the policyholder is admitted to the ICU. This helps ease the financial burden on the family members of the policyholder.
If you opt for a hospicash policy, you can claim a tax-deductible of up to ₹25,000 under Section 80D of the Income Tax Act, 1961. The deductible amount can go up to ₹30,000 for policyholders above the age of 60 years.
A hospicash insurance policy provides you with the peace of mind you need when dealing with a dire medical crisis. While a regular health plan covers your medical expenses, a hospicash plan ensures that all the additional expenses during your hospital stay remain covered. In other words, this fixed daily cash allowance covers all your bases to ease the financial burden on your pocket.
The minimum eligible age for buying a hospicash policy is 18 years.
The coverage limit of a hospicash policy will vary from one insurer to the next and will also depend on the plan you pick. The daily cash allowance ranges from ₹250-₹5,000 for most such policies.
Yes. You can either buy hospicash insurance plans as standalone policies or opt for them as add-on riders to your existing healthcare plan.
Yes. Most hospital daily cash policies cover pre-existing conditions, however, they may have certain injunctions vis-a-vis such conditions. For instance, you might be eligible for PED coverage only after the lapse of a certain period- say 24-48 months- after the policy is purchased.
No. Most hospicash policies don’t cover maternity-related hospitalisations. However, this clause varies from one insurer to the next and thus, must be cross-checked when buying a policy.
This fixed daily cash allowance can be used for hospital expenses, meeting miscellaneous overheads, and other costs not covered by your health insurance. In other words, you can spend this allowance as per your need.
No. Most hospicash insurance plans stipulate at least a 24-hour hospitalisation requirement to qualify for daily cash benefits. This disqualifies day-care procedures from their coverage umbrellas.